Leslie Has Been Offered the Choice of Either a $1,000

question 64

Essay

Leslie has been offered the choice of either a $1,000 rebate or a 5.5%, 48-month loan for the new car she is purchasing. If Leslie will be financing $15,000 and can get a 7.5%, 48-month loan at her credit union, should she take the $1,000 rebate or the 5.5% loan? (Show all work.)

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Definitions:

Exports

Goods and services sold by a country to other countries.

Domestic Price

The cost of goods and services within a country, affected by local economic factors such as inflation, taxation, and supply and demand.

World Price

The global market price at which goods and services are bought and sold, reflecting the demand and supply in the international market.

Trade

The exchange of goods and services between parties, which can be within an economy or between countries.