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Christina can afford to pay $230 a month for 6 years on a car loan. Given the interest rate is 7.9 percent, what amount she
Christina can afford to pay $230 a month for 6 years on a car loan. Given the interest rate is 7.9 percent, what amount she must borrow to make a purchase of the car? Holding the interest rate constant and increasing the amortization period of the loan, what could be the effect on the loan amount to be borrowed by Christina? (20 marks)
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