Question

Leslie has been offered the choice of either a $1,000 rebate or a 5.5 percent, 48-month loan for the new car she is purchasing. If Leslie will be financing $15,000 and she can get a 7.5 percent, 48-month loan at her credit union, should she take the $1,000 rebate or the 5.5 percent loan? (Show all work.)

Answer 1

15,000 * 0.075 * 4 = $4,500

4,500 - 1,000 = $3,500

15,000 * 0.055 * 4 = $3,300