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Derek plans to buy a $30,232.00 car. The dealership offers zero percent financing for 59.00 months...

Derek plans to buy a $30,232.00 car. The dealership offers zero percent financing for 59.00 months with the first payment due at signing (today). Derek would be willing to pay for the car in full today if the dealership offers him $____ cash back. He can borrow money from his bank at an interest rate of 4.75%.

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Answer #1

Cashback offered=30232-(30232/59)/(4.75%/12)*(1-1/(1+4.75%/12)^59)*(1+4.75%/12)
=3211.44622

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