Finance Practice Problems
PROBLEM:

Your local auto dealer is offering the following alternatives on a new Chrysler Sebring, which has a stated price of $37,000.00:

  • $1,500.00 "cash back," or
  • "Special" 24-month 2.6% APR financing
If you can borrow from your local bank at 12% APR for 24 months, how much do you save by picking the best alternative?

ANSWER:
(Enter your answer in the box above in DECIMAL form.)



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