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You wish to purchase a pick-up. The dealership offers to finance $32,000 at 2% AR with 36 monthly payments. The first payment starts 9 months

You wish to purchase a pick-up. The dealership offers to finance $32,000 at 2% AR with 36 monthly payments. The first payment starts 9 months from now. Market rates are 6.5% AR. Determine your true cost of purchasing the pick- up (i.e. -- the present value of your payments)

Please show all work without an excel sheet, thank you!

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