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Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The now car costs

Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The now car costs $25,000 and can be financed with a three-year loan at 7.12%. The used-car option: A three-year old model of the same car costs $17.000 and can be financed with a five-year loan at 6.88%

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