A new civil servant is confused about choosing an alternative to procure a motorbike that costs $1287,61, between borrowing money from a bank or credit at a dealer. If the dealer offers a motorbike with a down payment of 5 million and installments of $47,33/ month for 3 years, while the bank offers an interest of 1% / month, A.) it is better for the civil servant to apply for a purchase credit to the dealer or buy cash by borrowing money at the bank (Assume there are no other fees at the bank) bank or credit at a dealer. If the dealer offers a motorbike with a down payment of $348,66 and installments of $47,33/ month for 3 years, while the bank offers an interest of 1% / month

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A new civil servant is confused about choosing an alternative to procure a motorbike that costs $1287,61, between borrowing money from a bank or credit at a dealer. If the dealer offers a motorbike with a down payment of 5 million and installments of $47,33/ month for 3 years, while the bank offers an interest of 1% / month,

A.) it is better for the civil servant to apply for a purchase credit to the dealer or buy cash by borrowing money at the bank

(Assume there are no other fees at the bank)

bank or credit at a dealer. If the dealer offers a motorbike with a down payment of $348,66 and installments of $47,33/ month for 3 years, while the bank offers an interest of 1% / month

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