The cash rebate or dealer incentive financing

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Reference no: EM131059047

Sylvia wants to purchase a 2011 Dodge Challenger for a negotiated price of $38,770 inclusive of all costs (options, taxes, delivery charges, etc.). Sylvia will be making a down payment of $8,000. She has a choice between taking a $2500 cash rebate (and arranging her own financing at 4.98% for 36 months) OR selecting the dealer incentive financing of 0.9% APR for 36 months.

What are the respective monthly payments if she takes the cash rebate or she takes dealer incentive financing?

Reference no: EM131059047

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