Question: Can someone work this one out for me please You are planning to buy a car worth $20,000. Which of the two deals described below

Can someone work this one out for me please

You are planning to buy a car worth $20,000. Which of the two deals described below would you

choose:

a. The dealer offers to take 10% off the price, and lend you the balance at the regular

financing rate (which is an annual percentage rate of 9%)

b. the dealer offers to lend you $20,000 (with no discount) at a special financing rate of 3%

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