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A car costs $16,500. The buyer has two options from the dealer: Buy Option: Purchase the car immediately for $$16,500. Alternatively, the car can be
A car costs $16,500. The buyer has two options from the dealer: Buy Option: Purchase the car immediately for $$16,500. Alternatively, the car can be leased for three years with the following offer by the car dealer: Lease Option: Pay lease amounts of $360 at the beginning of every month for three years. At the end of three years, purchase the car for $6,750. Which option should be chosen if interest is 6%, compounded semi-annually? Show your work. (6 Marks)
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