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Suppose that you are about to buy a new car. You have decided on the model, which costs 12,000. The

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Suppose that you are about to buy a new car. You have decided on the model, which costs £12,000. The supplier gives you an option of either a 5-year car loan at a reduced APR of 7%, or £1,250 in cash and a 5-year car loan with an APR of 10%. Which choice is the better? If you depreciate the car at 20% a year, what is its value in 10 years' time?

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With an APR of 7 the annual payments of 12 000 are given by With an APR of 10 th…View the full answer


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Quantitative Methods For Business

Quantitative Methods For Business

ISBN: 978-0273739470

5th edition

Authors: Donald Waters

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Question Posted: September 20, 2012 00:25:24
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