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You are purchasing a new $65,000 lathe for your machine shop. The manufacturer has offered to finance it for you at 2.9% over 60 months

You are purchasing a new $65,000 lathe for your machine shop. The manufacturer has offered to finance it for you at 2.9% over 60 months or to give you a $3,000 cash discount. What is the true cost of the manufacturer financing?

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2.9%

4.83%

3.93%

9.43%

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