Use the Information for the Question(s) Below

question 59

Multiple Choice

Use the information for the question(s) below.
You are in the process of purchasing a new automobile that will cost you $27,500. The dealership is offering you either a $2,500 rebate (applied toward the purchase price) or 1.9% financing for 48 months (with payments made at the end of the month) . You have been pre-approved for an auto loan through your local credit union at an interest rate of 6.5% for 48 months.
-If you take the $2,500 rebate and finance your new car through your credit union your monthly payments will be closest to:

• A) $595
• B) $652
• C) $593
• D) $541

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Definitions:

Mutually Acceptable Agreement

An agreement reached through negotiation or mediation that is satisfactory to all parties involved.

Stages

Refers to the various phases or steps involved in a process or development.

Conventional Arbitration

A dispute resolution technique where an impartial third party listens to both sides and makes a binding decision, commonly used in labor disputes.

Final Offer Arbitration

A conflict resolution process where each party to a dispute makes a final offer, and an arbitrator chooses one of these offers as the resolution, without modification.