Which of these two alternatives is a better financing deal

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Reference no: EM131972254

Your have made a decision to purchase a new Durango. The following add downloaded recently off the web reveals your two financing options at the dealership. The purchase price is $33, 095.

If you decide to take the rebate (cash allowance), your local bank has agreed to finance the balance for 60 months at an annual rate of 5.5%

(A) Which of these two alternatives is a better financing deal?

(B) What would the cash allowance need to be in order to make these two options equal?

Reference no: EM131972254

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