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Steve would like to bu},r a new car but must complete a two year commitInent to the Peace Corp before he will drive the new

Steve would like to bu},r a new car but must complete a two year commitInent to the Peace Corp before he will drive the new car. The current price of the car Steve wants to is $22,601and the dealer expects the price of a similar new car to be $24,000 in two "years. 



If Steve can earn an annual interest rate of 3% on his money, should he bu}r the car now or wait for two years? Why?

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