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Economics

A college student in her senior year is considering purchasing a new car. The price of the car is $18,500, the sales tax is 8%, and the title, license, and registration fee is $450. The dealer offered to finance 90% of the price of the car for 48 months at a nominal interest rate of 9% per year, compounded monthly.

(a) How much cash does the student need to pay at the time she purchases the vehicle?

(b) How much is the monthly payment?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91703338

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