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You are planning to buy a car worth P20,000. Which of the two deals described below would you choose: a.The dealer offers to take 10%

You are planning to buy a car worth P20,000. Which of the two deals described below would you choose:

a.The dealer offers to take 10% off the price and lend you the balance at the regular financing rate (which is an annual percentage rate of 9%).

b.The dealer offers to lend you P20,000 (with no discount) at a specific financing rate of 3%.

*Using Time Value of Money

*Term is for 1 year and monthly payment.

P.s Show solution ;)

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