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Problem 1: Lisa East is considering buying a new Tacoma truck. She has negotiated a purchase price of $32,000. The length of the loan will be 72 months. She has reviewed her personal budget and can afford a payment of around $500 per month. Lisa must now negotiate an interest rate. What annual interest rate will get her closest to her desired $500 monthly payment. The interest rate is compounded monthly.
a) 3%b) .33%c) 5%d) 4%
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