You can purchase a car with one of the following two, Financial Management

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You can purchase a car with one of the following two

Alternative financing plans.

You can purchase a car with one of the following two financing plans. You make a down payment of $12,000 and 36 monthly payments of $400 starting immediately. Alternatively, you can make 60 monthly payments of $492 starting next month without any down payment. Which plan offers a better deal if the interest rate is 6 percent.

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