In order to buy a new car you must first payoff the, Financial Management

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In order to buy a new car you must first payoff the

You buy a car for $30,000 on monthly installment payments for 5 years. The discount rate is 6%. After 30 months, you decided to upgrade to a new fully equipped car, loaded with all options. The new car costs $60,000.

In order to buy a new car, you must first payoff the outstanding balance on the old car. What do you owe to the bank?

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