Calculation of loan payments

Reference no: EM1356697

Chrysler is offering a choice of either 48 month 2.0% APR financing, OR $2000 cash back if you pay "cash" on a car purchase. The stated price is $25,000. If you can obtain bank financing at 5.75% APR (monthly compounding), what would be the implied monthly loan payments if use your bank for financing and thus drop the price by the $2000 cash rebate? Assume 48 month term for the bank loan also.

a.815
b.2168
c.616
d.538
e.insufficient information to compute

Reference no: EM1356697

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