(Answered) The washing machine company is trying to increase its sales

Management Studies

The washing machine company is trying to increase its sales. Thus it has offered to sell you the washing machine for $23,000 or charge you $25,000 and lend you $20,000 of the purchase price at 9%. Thus you will make a $5,000 down payment and make the annual payments based on a 9% (subsidized) rate or you will make a $3000 down payment and make the five annual payments. How much cheaper is the discounted financing option?

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