(s points) Rich buys a car for $34,000 and has two options for financing. The dealership offers either financing of 0% compounded monthly for 5-years,
or a $5,000 cash rebate. If Rich takes the rebate, then he will apply the rebate to the cost of the car and finance the remaining balance with a loan for 5-
years at 5.05% compounded monthly through the Tiger's Credit Union.
(a) What would Rich's monthly payment be if he takes the 5-year 0% financing?
Monthly payment for 5-year 0% financing =
$566.67
(Note: Your answer should include a dollar sign and be accurate to two decimal places)
(b) What would Rich's monthly payment be if he takes the $5,000 rebate?
Monthly payment with $5,000 rebate =
(Note: Your answer should include a dollar sign and be accurate to two decimal places)|
(c) Which of the two options is financially better for Rich?
Rich will save money with the rebate offer