Low financing or cash back

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Reference no: EM132014349

Low Financing or Cash Back?

A car company is offering a choice of deals. You can receive $500 cash back on the purchase or a 3.9 percent APR, 4-year loan. The price of the car is $19,500 and you could obtain a 4-year loan from your credit union, at 7.9 percent APR.

Which deal is cheaper?

3.9 percent APR offer

$500 cash back offer

Reference no: EM132014349

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