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An engineering student intends to purchase a new computer. He plans to pay $300 down and finance the remainder over a 12 month period. The

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An engineering student intends to purchase a new computer. He plans to pay $300 down and finance the remainder over a 12 month period. The maximum amount that he can repay each month is $100. 1. What is the most expensive computer he can purchase, assuming an interest rate of 2% per month (compounded monthly)? Draw the Cash Flow Diagram for this problem a. b

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