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Suppose you take out a car loan that requires you to pay $ 6 , 0 0 0 now, $ 3 , 0 0 0

Suppose you take out a car loan that requires you to pay $

6, 000

now, $

3, 000

at the end of year

1,

and $

6, 000

at the end of year

2 .

The interest rate is

5 %

now and increases to

10 %

in the next year. What is the present value of the payments?

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