Auto financing paula is considering the purchase of a new


Question: AUTO FINANCING Paula is considering the purchase of a new car. She has narrowed her search to two cars that are equally appealing to her. Car A costs $28,000, and car B costs $28,200. The manufacturer of car A is offering 0% financing for 48 months with zero down, while the manufacturer of car B is offering a rebate of $2000 at the time of purchase plus financing at the rate of 3%/year compounded monthly over 48 mo with zero down. If Paula has decided to buy the car with the lower net cost to her, which car should she purchase?

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