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Derek decides to buy a new car. The dealership offers him a choice of paying $502.00 per month for 5 years (with the first payment
Derek decides to buy a new car. The dealership offers him a choice of paying $502.00 per month for 5 years (with the first payment due next month) or paying some amount today. He can borrow money from his bank to buy the car. The bank requires a 6.00% interest rate. What is the most that he would be willing to pay today rather than making the payments?
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