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Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a pre-owned car. He says, For only 7 annual

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Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 7 annual payments of $2,600, this beautiful 1998 Honda Civic can be yours." If you can borrow money at 7%, what is the price of this car? Assume the payment is made at the end of each year

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