Finally, you have decided to buy a car. You are able to negotiate the price down to $12,000. You have no savings, so you need to borrow $12,000 in a 3-year loan from your bank (your banks offers lower rates than the auto-dealer) at a 2.5% APR (annual rate).

Question: How much will you owe to the bank after 2 years?

Group of answer choices

4,156

3,759

4,100

3,688

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