Apples, Oranges and Auto-Financing

Published 01 Jan 1994
Reference 4319
Region Europe
Length 1 page(s)
Language English

The case demonstrates the importance of understanding the difference between a lump sum invested over time and an annuity. The case is based on a real event. Auto dealers in the US were fraudulently using a computer program, which made an unfair interest rate comparison, to convince car buyers to finance their purchases.