Suppose that you decide to buy a car for $55,000, including taxes and license fees. You saved $11,000 for a down payment. The dealer is offering you a choice between two incentives.
Incentive Ais S4000 off the price of the car, followed by a five-year loan at 6.55%
Incentive B does not have a cash rebate, but provides free financing (no interest) over five years.
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What is the difference in monthly payments between the two offers? Which incentive is the better deal? Use PMT=
The difference in monthly payments between the two offers is $
(Round to the nearest cent as needed.)
Which incentive is the better deal? Choose the correct answer below.
A. Incentive B is the better deal
B. Incentive A is the better deal