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Rabbit Motor is offering the following credit on a new $20,000 car. You pay $5,000 down and then $500 a month for next 30 months. Turtle Auto next door does not offer credit but will give you $2,500 off the list price for the same car. If the annualized rate of interest (APR) is 12 percent (compounded monthly), which company is offering a better deal?
A Rabbit Motor offers a better deal because the PV of your payment is higher. B Rabbit Motor offers a better deal because the PV of your payment is lower. C Turtle Auto offers a better deal because the PV of your payment is higher. D Turtle Auto offers a better deal because the PV of your payment is lower
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In this essay, we are going to discuss the issues of financial management in a non-profit organisation.
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