What is cost to dealer of every customer who takes advantage

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In its "Year-End Countdown Sale," a local car dealer advertised "0% interest for 60 months!"16 What role does the time value of money play in this promotion? Assum- ing that the car dealer is able to borrow funds at 8 percent interest, what is the cost to the dealer of every customer who takes advantage of this offer? If you could borrow money to buy a car from this dealer, which rate would be more relevant in determining how much you might offer for the car: the rate at which you borrow money, or the rate at which the dealer borrows money?

Reference no: EM13914648

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