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Problem 1: Wanda wants to buy a car that is available at two dealerships. The price of the car is the same at both dealerships. Johnson Motors would let her make quarterly payments of $7,000.00 for 2 years at a quarterly interest rate of 4.54 percent. Her first payment to Johnson Motors would be due immediately. If Prudencio Cars would let her make equal monthly payments of $3,400.00 at a monthly interest rate of 1.00 percent and if her first payment to Prudencio Cars would be in 1 month, then how many monthly payments would Wanda need to make to Prudencio Cars?
Option 1: 7.09 (plus or minus 0.3 payments)Option 2: 15.20 (plus or minus 0.3 payments)Option 3: 7.17 (plus or minus 0.3 payments)Option 4: 15.36 (plus or minus 0.3 payments)Option 5: 7.32 (plus or minus 0.3 payments)
Financial Statement Analysis and Preparation
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