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A consumer made a down payment of $2000 toward the purchase of a new car. To pay the balance of the purchase price, she has
A consumer made a down payment of $2000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 12% per year compounded monthly. Under the terms of her finance agreement, she is required to make payment of $210 each month for 36 months. What is the cash price of the car? What is the total amount paid for the balance of the car? (Include the down payment in your answers.) How much money would be saved by paying cash for the car? Use Excel or annuity formulas.
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