An auto dealership, KM Motors, is offering its customers free credit on a $10,000 car. The customer pays $4000 down and then the balance at the end of 2 years. A competing dealership, T Motors, does not offer free credit but will provide $500 off of the list price. If the interest rate is 10 percent, which company is offering the better deal?© BrainMass Inc. brainmass.com June 21, 2018, 10:41 am ad1c9bdddf
Note that the customer pays more in sum through KM Motors, but since a portion of the payment is delayed, the customer can keep the ...
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