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Derek decides to buy a new car. The dealership offers him a choice of paying $593.00 per month for 5 years (with the first
Derek decides to buy a new car. The dealership offers him a choice of paying $593.00 per month for 5 years (with the first payment due next month) or paying some $28,611.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options?
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Let r be the interest rate Pay ment per ...
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
