Janet buys a $20,000 car. Prevailing market rates are nominal 8.0% annual interest, convertible monthly. The dealership offers her the choice of a rebate upon purchase of the car for cash, or alternately Janet can make no down payment and 60 monthly payments based on a nominal 2.5% annual interest, convertible monthly. The first payment would be due one month after the purchase of the car. The amount of the rebate is set so that the dealership is indifferent as to whether Janet takes the rebate or finances the car at the offered below market interest rate. Determine the amount of the rebate.
Answers: 2
Another question on Business
Business, 21.06.2019 22:00
When slick heating company switched to an activity based costing system, it realized that it was allocating a much lower percentage of factory overhead to a product line that the marketing department was trying to push. the product line may contain which type of products?
Answers: 2
Business, 22.06.2019 02:00
What is an example of a good stock to buy in a recession? a) cyclical stock b) defensive stock c) income stock d) bond
Answers: 1
Business, 22.06.2019 17:30
What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?
Answers: 1
Business, 22.06.2019 18:30
What historical context does wiesel convey using the allusion of a fiery sky? he compares the sky to hell. the fires from air raids during world war ii the cremation of jews in the concentration camps the outbreak of forest fires from bombs in world war ii
Answers: 1
You know the right answer?
Janet buys a $20,000 car. Prevailing market rates are nominal 8.0% annual interest, convertible mont...
Questions
History, 03.12.2020 20:40
English, 03.12.2020 20:40
Advanced Placement (AP), 03.12.2020 20:40
Mathematics, 03.12.2020 20:40
Mathematics, 03.12.2020 20:40
Mathematics, 03.12.2020 20:40
Health, 03.12.2020 20:40
Mathematics, 03.12.2020 20:40
Mathematics, 03.12.2020 20:40
