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Using the Following Information, What Is the Cost to Buy \quad

Question 116

Multiple Choice

Using the following information, what is the cost to buy a car? * Down payment \quad\quad\quad\quad\quad\quad\quad\quad\quad $3,000\$ 3,000
* Monthly loan payment \quad\quad\quad\quad\quad $350\quad \$ 350 per month for a six-year loan
* Opportunity cost of down payment \quad\quad $3,000×\$ 3,000 \times loan period (in years) ×2%\times 2 \% interest
* Estimated value of vehicle at end of ownership period $4,000\$ 4,000


A) $3,000.
B) $21,200.
C) $24,560.
D) $25,200.
E) $28,200.

Correct Answer:

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