Heather wants to buy a Dodge Viper that she found online. The dealer has offered her the following two options for financing:
Rebate Option: No down payment, a $3,500 rebate, and 9.0% APR.
Low APR Option: $1,500 down and 3.5% APR.
Heather is going to finance the car for 5 years. Calculate the following for each option:
1. Monthly payment
2. Total amount of interest paid over the loan term
Based on the above information, which option should Heather choose? Why?
Detailed calculations required
Vehicle Price $56,845