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You are about to purchase a new car and have two options to pay for it. You can pay $20,000 in cash immediately, or you
You are about to purchase a new car and have two options to pay for it. You can pay $20,000 in cash immediately, or you can get a loan that requires you to pay $500 each month for the next 48 months (four years). If the monthly interest rate you earn on your cash is 0.5%, which option should you take? Why?
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