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Example 2: After considering your uncle's offer, you decide you really want to own your aunt's car, which has much better performance and is newer

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Example 2: After considering your uncle's offer, you decide you really want to own your aunt's car, which has much better performance and is newer than your uncle's. Your aunt, considering your financial situation but also being unwilling to give you two full years without financial commitment related to the car, decides she would prefer monthly payments from you. The price you agree is $10,000 for the car, but you don't pay anything today. Instead, your aunt agrees you will pay her price over 30 months, but she is charging you a 0.25% per month interest rate, even if the going market rate is 0.5% phr month. (You pay back the 10.000 only after 30 months when you will be-back on your feet). If you accept the offer: )What would be your monthly payments? a. $25; b. $50: c. $250; d. $125 2) What would be the cost of the car? a. $10,794 b. $10,000 c. $9,305 d. $8,610

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