Suppose you are going to buy a car the cost of car is 24000


Suppose you are going to buy a car. The cost of car is $24,000. You have $10,000 for down payment. You can borrow the balance of $14,000 from dealership’s finance company at 3% APR, with monthly payment for 36 months or you can borrow from a bank with 8% APR monthly payment for 3 years, and receive a $2,500 rebate on the purchase price. Assume that if you take the rebate, you will apply it toward the purchase. Which alternative is better deal?

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Financial Management: Suppose you are going to buy a car the cost of car is 24000
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