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Derek decides to buy a new car. The dealership offers him a choice of paying $506.00 per month for 5 years (with the first payment
Derek decides to buy a new car. The dealership offers him a choice of paying $506.00 per month for 5 years (with the first payment due next month) or paying some $28,398.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options? (round to 3 decimals)
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