45. Annuity Values. You can buy a car that is advertised for $24,000 on the following terms:...

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45. Annuity Values. You can buy a car that is advertised for $24,000 on the following terms:

(a) pay $24,000 and receive a $2,000 rebate from the manufacturer;

(b) pay $500 a month for 4 years for total payments of $24,000, implying zero percent financing. Which is the better deal if the interest rate is 1% per month? (LO3)

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