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You have two offers. Offer A: A friend offers to loan you $9000 for a car purchase, at a simple annual interest rate of 15%
You have two offers. Offer A: A friend offers to loan you $9000 for a car purchase, at a simple annual interest rate of 15% for 3 years. You would pay off the loan at the end of the 3-year term. Offer B: You can make a car purchase of $8500 using a credit card that charges 15% interest, compounded daily. Suppose there is currently a promotion that allows you to postpone making payments. You do not intend to make payments until the end of the 3-year term. Which of the following describes a comparison of these two offers? With offer B, you will pay $279.40 less than with offer A. The two offers are equivalent. With offer A, you will pay $279.40 less than with offer B. With offer A, you will pay $329.40 less than with offer B
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