14. You plan to buy a $32,788.00 car. The dealership offers zero-percent financing for 59.000 months, with the first pay
Posted: Fri Jul 01, 2022 7:43 am
- 14 You Plan To Buy A 32 788 00 Car The Dealership Offers Zero Percent Financing For 59 000 Months With The First Pay 1 (49.68 KiB) Viewed 39 times
14. You plan to buy a $32,788.00 car. The dealership offers zero-percent financing for 59.000 months, with the first payment due at signing (today). You have approval for an auto loan from XYZ Bank at an interest rate of 4.58% compounded monthly. What must be the cashback offered by the dealer such that you are indifferent between the two financing schemes? [Hint: With 0% financing, you will make equal monthly payments such that the sum of the payments is equal to the cost of the car.] a. $3,559.92 b. $3,786.80 c. $3,465.22 d. $3,367.46 e. None of the above