You are in the process of purchasing a new motorbike that will cost you $25 000. The dealership is offering you either a $1 000 rebate (applied toward the purchase price)or 3.9% financing for 60 months (with payments made at the end of the month). You have been pre-approved for a bike loan through your local credit union at an interest rate of 7.5% for 60 months. Should you take the $1 000 rebate and finance through your credit union or forgo the rebate and finance through the dealership at the lower 3.9% APR? Show your calculations.

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The Answer of You are in the process of purchasing a new motorbike that will cost you $25 000. The dealership is offering you either a $1 000 rebate (applied toward the purchase price)or 3.9% financing for 60 months (with payments made at the end of the month). You have been pre-approved for a bike loan through your local credit union at an interest rate of 7.5% for 60 months. Should you take the $1 000 rebate and finance through your credit union or forgo the rebate and finance through the dealership at the lower 3.9% APR? Show your calculations.

You Are in the Process of Purchasing a New Motorbike