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Equivalence for Repeated Cash Flows (assume the price of the car does not change over 4 years)
A student is buying a new car. The car’s price is $19,500, the sales tax is 8%, and the title, license, and registration is $650 to be paid in cash. Instead of buying the car now, the student has decided to save money in equal monthly amounts for 48 months and then pay cash. If the student earns 0.75% per month interest on the money she saves, how much money is the monthly savings?
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