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31. You are looking to buy a sports car costing $23,000. One dealer is offering a special reduced financing rate of 2.9% APR on new

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31. You are looking to buy a sports car costing $23,000. One dealer is offering a special reduced financing rate of 2.9% APR on new car purchases for three-year loans, with monthly payments. A second dealer is offering a cash rebate. Any customer taking the cash rebate would, of course, be ineligible for the special loan rate and would have to borrow the balance of the purchase price from the local bank at the 9% annual rate. How large must the cash rebate be on this $23,000 car to entice a customer away from the dealer who is offering the special 2.9% financing

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