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A car dealership is offering a choice of a 0% loan or $5,000 cash back on the purchase of a $29,061 car.
a) If someone took the 0% offer, calculate the amount of the monthly payments for 5 years.
b) Someone took the cash-back offer and used the money as a downpayment on the car. She can borrow money from a local bank at 6% interest compounded monthly for 5 years. How much is her monthly payment?
c) Which of the 2 offers is more favorable? Why?
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