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You are purchasing a new car toyota rav 4 , purchase price is $ 3 1 , 5 4 8 . Consider instead that you
You are purchasing a new car toyota rav purchase price is $ Consider instead that you will make only a $ down payment. If you do this then the interest rate on the loan will increase to per month. However, for this unique loan you will pay $ at the end of the first month and then will increase the amount that you will pay by $ each month ie each payment is $ more than the previous month's payment for the next months. If you were to accept this plan, would you have paid off the entire finance amount of the loan? That is what is the difference between the present value of the amount paid and the present value of the loan's finance amount?
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