My homework question goes like this:
You are purchasing a new car. The price is $18,239. You will pay $2,000 now and the rest, monthly, in a 4-year loan. The automobile dealership is offering a sales promotion where either:
1) You will receive a $1,000 rebate check now and the annual interest rate on the loan is 11.9% or
2) The annual interest rate on the loan will be 1.9% but there is no rebate.
Compare the two options by calculating the present value of each option, assuming the discount rate is 8%. Which is a better deal?
I'm allowed to use Excel but I don't even know where to begin!