Ferrari offers the 360 Spider for $160,724 cash.Ferrari also advertises a purchase plan with 4.5% APR financing and 48 end-of-month payments of $3,862.Which is the better deal?

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1f_5af4_a768_49bc52ccfeb4_TB2902_11 PV = 3,862 × 11ea7fdb_fc1f_5af5_a768_b3486ee4ec7a_TB2902_11 = $169,360.07
Using a financial calculator:
N = 48, I/Y = .375, PMT = -3,862, FV = 0, cpt PV = $169,360.07

Ferrari Offers the 360 Spider for $160,724 Cash