Ve Options v(4) You want to buy a Ford SUV with a list price of $48,000. Dealer A offers to sell it for a discount price of $42,000 if you paycash. Dealer B offers "0% financing" - you pay 4 installment payments of S12,000 starting from next year. Suppose you havea high-interest savings account that pays annual rate of 10%. Which deal is better? Show your calculation steps. (Round totwo decimal places.)

Pay 42000 cash or pay 48000 in installment 0% Interest on financing Interest on saving account 10%

(4) You want to buy a Ford SUV with a list price of $48,000. Dealer A offers to sell it for a discount price of $42.000 if you pay cash. Dealer B offers "0% financing" - you pay 4 installment payments of $12,000 starting from next year. Suppose you have a high-interest savings account that pays annual rate of 10%. Which deal is better? Show your calculation steps. (Round to two decimal places.)

(4) You want to buy a Ford SUV with a list price of $48,000. Dealer A offers to sell it for a discount price of $42.000 if you pay cash. Dealer B offers "0% financing" - you pay 4 installment payments of $12,000 starting from next year. Suppose you have a high-interest savings account that pays annual rate of 10%. Which deal is better? Show your calculation steps. (Round to two decimal places.)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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