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You have your eye on a car that costs about $20,000. A. If you borrow the entire amount now and have the car today, what
You have your eye on a car that costs about $20,000. A. If you borrow the entire amount now and have the car today, what will your monthly payment be for a 5 year loan at 4% interest? B. How much would you pay in total for the loan in part A? C. If you chose to save for the car for 5 years and could save into an account that accrues interest at 4%, what should you deposit each month? D. How much total would you deposit during the 5 years of saving? E. How much of your total from part C is interest? F. How much would you save in total if you saved for the car instead of borrowing to buy it? (Over the entire 5 years)
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