A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 8 annual payments of $2,700, this beautiful 1998 Honda Civic can be yours." If you can borrow money at 9%, what is the price of this car? Assume the payment is made at the end of each year.

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Part 1

If you can borrow money at 9%, what is the price of this car?