A car company is offering a choice of deals. You can receive $1,000 cash back on the

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A car company is offering a choice of deals.  You can receive $1,000 cash back on the purchase, or a 2 percent APR, 5-year loan. The price of the car is $20,000 and you could obtain a 5-year loan from your credit union, at 7 percent APR.  Which deal is cheaper?
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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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