Classic Autos is offering free credit on $55,000 car. You pay $10,000 down today
ID: 2775476 • Letter: C
Question
Classic Autos is offering free credit on $55,000 car. You pay $10,000 down today and then balance at the end of five years. Premium Motors next door does not offer credit, but will give you $15,000 off the list price. Which company is offering a better deal? Assume annual compounding. Assume 8% interest rate.
Premium Autos
Both are offering the same deal
Cannot determine without further information.
Classic Autos
A.Premium Autos
B.Both are offering the same deal
C.Cannot determine without further information.
D.Classic Autos
Explanation / Answer
Premium Autos
A.Premium Autos