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Mark is planning to purchase a car. The list price of the car is $39000. If Mark pays cash for the car, the dealer will
Mark is planning to purchase a car. The list price of the car is $39000. If Mark pays cash for the car, the dealer will reduce the price by 10%. Otherwise, the dealer will provide financing the terms of which require Mark to pay $8346 at the end of each of the next five years. The effective interest rate to the nearest percent for the financing arrangement for the five annual payments, assuming that the amount financed equals the cash price of the car is
Solve using FV=, PV=, PMT=, I=, and N=,
No excel.
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