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A car company is offering a choice of deals. The price of the car is $17,000 and you could either: a- obtain a 3-year loan

A car company is offering a choice of deals. The price of the car is $17,000 and you could either:

a- obtain a 3-year loan from your credit union, at 7 percent APR and receive $2,000 cash back on the purchase or

b- obtain a 3-year loan from the Company at 2 percent APR.

Which deal is cheaper? Explain.

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