1. Derek decides to buy a new car. The dealership offers him a choice of...
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Accounting
1. Derek decides to buy a new car. The dealership offers him a choice of paying $566.00 per month for 5 years (with the first payment due next month) or paying some $28,058.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options? Answer format: Percentage Round to: 3 decimal places (Example: 9.243%, % sign required. Will accept decimal format rounded to 5 decimal places (ex: 0.09243))
2. Derek currently has $13,346.00 in an account that pays 5.00%. He will withdraw $5,920.00 every other year beginning next year until he has taken 5.00 withdrawals. He will deposit $13346.0 every other year beginning two years from today until he has made 5.0 deposits. How much will be in the account 29.00 years from today?
Answer format: Currency: Round to: 2 decimal places.
*ANSWER BOTH QUESTIONS PLEASE*
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