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has $25000 in an investment account earning 6 percent per year. Bill decides to purchase a new car with a sticker price of $25000. The

has $25000 in an investment account earning 6 percent per year. Bill decides to purchase a new car with a sticker price of $25000. The car dealer offers Bill either $2000 cash back or 2% financing for 5 years. If Bill takes the financing, he will make 60 equal payments. Otherwise, he will pay $23000 today for the car.

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