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Suppose that you have two alternatives to purchase a new Mini Cooper. You must put $2500 down, and make payments of $395 per month for

Suppose that you have two alternatives to purchase a new Mini Cooper. You must put $2500 down, and make payments of $395 per month for 48 months, at the end of each month, or pay $19,000 cash. The dealer's stated financing rate is 5.4% APR. If you agree to the financing terms.


How much money are you saving (+) or losing (-) in comparison to paying cash in dollars and cents?

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