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Derek decides to buy a new car. The dealership offers him a choice of paying $562.00 per month for 5 years (with the first payment

Derek decides to buy a new car. The dealership offers him a choice of paying $562.00 per month for 5 years (with the first payment due next month) or paying some $28,170.00 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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