How much is the zero-interest offer worth

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Toyota has announced that it will offer free financing for 36-month loans on selected new models. How much is the zero-interest offer worth to you on a 36-month $25,000 loan if the market rate on loans of this type is 8%?

If you had the option of receiving a $2,500 instant rebate instead of the zero-interest loan, would you take the rebate?

Next month, when the promotion is 1.99% APR (instead of free financing) for 36-month loans, would you prefer a $2,500 instant rebate or the low rate financing? Could you Please Provide Detailed Answer as I really need to know in full how its done. 

Reference no: EM131825475

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