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Finance: You pick out a new car and the dealer is offering 0% interest for 60 months...

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Finance

Finance:

You pick out a new carand the dealer is offering 0% interest for 60 months or a $2,500cash-back bonus. Your negotiated price is $16,000. Your creditunion is currently offering a special 2.6% for 60-month carloans.

a.What will beyour monthly car payment if you accept the 0% interest offer?
  Monthly car payment: $266.60$
b.

What will be yourmonthly car payment if you accept the $2,500 cash-back bonus andfinance the purchase at your credit union?

  Monthly car payment: $195.50$
c.

Should you accept the0% interest offer or the cash-back bonus?

Answer:Cash-back bonus
0% interest rateoffer

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