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You are about to purchase a new car from a dealer who has a new and unusual payment plan. You have the choice to pay
You are about to purchase a new car from a dealer who has a new and unusual payment plan. You have the choice to pay $27,000 cash today or $30,000 in 4 years. If you have the opportunity to borrow the cash price value of the car at a rate of 2% and repay the loan in a lump sum in 4 years, which option should you take and why?
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