Question

Derek plans to buy a $28,241 car. The dealership offers zero percent financing for 49.00 months with the first payment due at signing (today). Derek would be willing to pay for the car in full today if the dealership offers him $____ cash back. He can borrow money from his bank at an interest rate of 4.11%.

Answer 1

suppose derek taken the finance scheme from dealer then he must save interest upto
PV	28,241.00
Rate pm	0.343%	+4.11/12%
Months	49
PMT	$624.91	=PMT(C7811/12,B7812,B7810,,1)
Total amount paid	30,620.37	=624.91*49
Interest amount	2,379.37	=30620.37-28241
so he must take discount 2379.37 from dealer if he pays the money in cash taking loan from the bank
					pleae