Assume the car can be purchased for 0% down for 60 months

Last updated: 8/13/2022

Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker price of $42,500 with factory and dealer rebates of $5,100 (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.) $ X (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.) X (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) x Your answer cannot be understood or graded. More Information % (d) State whether the 0% APR or the 2.5% add-on rate should be preferred. 0% APR 2.5% add-on rate