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Finance the entire amount at the rate

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You want to buy a car and have 2 options. The sticker price is $28,000. The first option is to finance the entire amount at the rate of 0.5%APR for 5 years. The second option is to take a discount of $3,000 and finance the rest at 5%APR for 6 years. Which is the best option? (Best option is the least total cost)

Reference no: EM132043525

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