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You are planning to buy a car worth $20,000. Which of the two deals described below would you choose, both with a 48-month term?

You are planning to buy a car worth $20,000. Which of the two deals described below would you choose, both with a 48-month term? The dealer offers to take 10% off the price, and lends you the balance at an APR of 9%, monthly compounding. The dealer offers to lend you $20,000 (with no discount) at an APR of 3%, monthly compounding.

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