Which company is offering a better deal

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Reference no: EM13877932

Classic Autos is offering free credit on $55,000 car. You pay $10,000 down today and then balance at the end of five years. Premium Motors next door does not offer credit, but will give you $15,000 off the list price. Which company is offering a better deal? Assume annual compounding. Assume 8% interest rate.

A. Premium Autos

B. Both are offering the same deal

C. Cannot determine without further information.

D. Classic Autos

Reference no: EM13877932

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