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Suppose that you are thinking about buying a car and have narrowed down your choices...

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Suppose that you are thinking about buying a car and have narrowed down your choices to two options.The new-car option: The new car costs $29,000 and can be financed with a four-year loan at 5.73%.The used-car option: A three-year old model of the same car costs $14,000 and can be financed with a four-year loan at 7.26%.

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