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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 4, purchase price is $31,548. Consider instead that you will make only a $1,000 down payment. If you do this then the interest rate on the loan will increase to 1.75% per month. However, for this unique loan you will pay $250 at the end of the first month and then will increase the amount that you will pay by $50 each month (i.e. each payment is $50 more than the previous month's payment) for the next 36 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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