Indifferent between the two financing options

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Reference no: EM13953803

Bill was considering two different deal he could make for his new car. He can finance the purchase price , 25000$ entirely through the dealer at a 1.9% APR( compound monthly ) for 5 years, with payment monthly. alternatively the dealer will give Bill a cash rebate and provide financing at 9% APR( compound monthly) for 5 years. With monthly payment. What is the value of the rebate for which Bill would be indifferent between the two financing options?

Reference no: EM13953803

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