Financing Cash Purchase versus 0% Financing

[clemsonfor]

Please post any questions that you may have. I know it's a sickness, but I enjoy discussing financial economics.

Steve

I know this is an old thread. There was a link to it at the bottom of another i was in so i wanted to go back to school and read your economic analysis from a retired college professor. You did it exactly like i would have if i could remember the formulas. I now would have to go and look them up. You did a good job and it took me back to college. I look at things this way but often dont go into as much detail as you did here although i do recognise it as the proper way to totally look at things. It did work out to a low allualized interest rate. I would of suspected just looking at it to be in the 5 or 6% range, but im just a novice! I only went as far as a masters.

Thanks for the trip back to college, econ classes. Took me back to Dr. Smathers, or Dr. Strakas classes back at Clemson!

 

[scaredychicken]

Steve, are you using an Adam Smith picture (the Father of Economics) as your avatar ? Pretty cool Thanks for the example (several years old), it is becoming a useful comparison for me at this time.