Finance:
You pick out a new car
and the dealer is offering 0% interest for 60 months...
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Finance
Finance:
You pick out a new carand the dealer is offering 0% interest for 60 months or a $2,500cash-back bonus. Your negotiated price is $16,000. Your creditunion is currently offering a special 2.6% for 60-month carloans.
a.
What will beyour monthly car payment if you accept the 0% interest offer?
  Monthly car payment: $266.60
$
b.
What will be yourmonthly car payment if you accept the $2,500 cash-back bonus andfinance the purchase at your credit union?
  Monthly car payment: $195.50
$
c.
Should you accept the0% interest offer or the cash-back bonus?
Answer:Cash-back bonus
0% interest rateoffer
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