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(Solved) In Spring 2010, some dealers offered a cash-backallowance of


In Spring 2010, some dealers offered a cash-backallowance of $2250 or 0.9% financing for 36 months on anAcura TL. Source: cars.com.a. Determine the payments on an Acura TL if a buyer choosesthe 0.9% financing option and needs to finance $30,000 for36 months, compounded monthly. Find the total amount thebuyer will pay for this option.b. Determine the payments on an Acura TL if a buyer choosesthe cash-back option and now needs to finance only $27,750.At the time, it was possible to get a new car loan at 6.33%for 48 months, compounded monthly. Find the total amountthe buyer will pay for this option.c. Discuss which deal is best and why

 


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