Suppose that you decide to buy a car for $57,000, including taxes and license down payment. The dealer is offering you a choice between two incentives. Incentive A is $6000 off the price of the car, followed by a five-year loan at 7.03%. Incentive B does not have a cash rebate, but provides free financing (no interest) over five years. What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PA [-] PMT= The difference in monthly payments between the two offers is (Round to the nearest cent as needed.)

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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Suppose that you decide to buy a car for $57,000, including taxes and license fees. You saved $10,000 for a
down payment. The dealer is offering you a choice between two incentives.
Incentive A is $6000 off the price of the car, followed by a five-year loan at 7.03%.
Incentive B does not have a cash rebate, but provides free financing (no interest) over five years.
What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use
PO
L-GOT
PMT=
***
The difference in monthly payments between the two offers is $.
(Round to the nearest cent as needed.)
Transcribed Image Text:Suppose that you decide to buy a car for $57,000, including taxes and license fees. You saved $10,000 for a down payment. The dealer is offering you a choice between two incentives. Incentive A is $6000 off the price of the car, followed by a five-year loan at 7.03%. Incentive B does not have a cash rebate, but provides free financing (no interest) over five years. What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PO L-GOT PMT= *** The difference in monthly payments between the two offers is $. (Round to the nearest cent as needed.)
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