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Oaken can afford to pay $400 per month for the next 7 years in order to purchase a new car. The interest rate is 2.5%

Oaken can afford to pay $400 per month for the next 7 years in order to purchase a new car. The interest rate is 2.5% (APR) compounded monthly. What is the most he can afford to pay for a new car today?

a. about $13,989

b. about $2,540

c. about $30,795

d. about $33,600

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