Question

You want to purchase a car. It costs 25,000. You have 3,000 that you have saved up for a down payment. You can go with the 5 year car and 60 month car loan. The car manufacture is offering a special deal on your car. You can get zero percent financing or 2,000 cash back. If you choose the cash back, the interest rate is 10 percent. If you choose the cash back, you use the cash to increase your down payment, so the amount that you have to finance is less. Which is a better deal and by how much?

Answer 1

60month. by $200