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Al's Auto has a 2.9% APR 48 monthly payment financing option on new $20,000 Corolla sedans.
a) What is the monthly payment?
b) What is the equivalent cash price of the Corolla if your only other option is 7.5% APR monthly using Bank financing, and Al's will not discount the $20,000 price?
c) How much are you saving today by taking the 2.9% financing offer?
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Write down the differences among horizontal, vertical, and conglomerate mergers.
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