Review problem on apr financing

Reference no: EM132028259

Question: Your parents ask your advice on financing a new car purchase. Nissan has been running a national sales promotion that gives buyers of a new Maxima the choice of a $1,500 rebate or 4% APR financing for 60 months. In addition, the local Nissan dealer is offering 5.9% APR financing for 60 months on all car purchases through a local bank, which could be used if your parents decide to take the rebate and use it as an additional down payment on their Maxima. Your parents found a fully loaded Maxima 3.5 SL for a price of $31,000 and have $3,000 as a down payment. Should your parents take the $1,500 rebate with 5.9% APR financing or the 4% APR financing and no rebate? Show your work by using financial calculator to justify your decision. (Hint: compare monthly payments.Using financial calculator!!!)

Reference no: EM132028259

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