Calculate the appropriate down payment

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Reference no: EM132654903

Problem 1: A salesperson gives you the following payment plans, "Buy this new car for $30,000 cash OR, with an appropriate down payment, pay $800 per month for 36 months at 5% interest.". If these two offers are financially equivalent at the stated interest rate, calculate the "appropriate" down payment. (Remember, when interest rates are quoted as they are in this question, they are APRs. Also, Financially equivalent means that the two streams of cashflows have the same PV)

Reference no: EM132654903

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