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Loaning to Purchase an Automobile

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You want to purchase an automobile priced at $26,500. the dealer offers you 0% financing for 60 months or a $5,000 rebate. You can obtain 5.9% financing for 60 months through your bank. Which option is a better deal? Explain.

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Neat and step-by-step solution for loaning to purchase an automobile is provided. Graphs (if any) are also drawn.

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You want to purchase an automobile priced at $26,500. the dealer offers you 0% financing for 60 months or a $5,000 rebate. ...

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