Choice of special financing or price discount

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Reference no: EM131021014

Performance Auto is offering a choice of special financing or price discount on their new sports car. The sticker price is $35,000 and you can drive it away today for a cash payment of a cash payment of $28,500. You can borrow the $28,500 from 4th/8 Bank at 8% APR and make monthly payments for 4 years. Performance will loan to you at .4% APR and make monthly payments for 4 years. Which deal do you select?

Reference no: EM131021014

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Choice of special financing or price discount : Performance Auto is offering a choice of special financing or price discount on their new sports car. The sticker price is $35,000 and you can drive it away today for a cash payment of a cash payment of $28,500. You can borrow the $28,500 from 4th/8 ..

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