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Suppose that you borrow $14 comma 000 for four years at 7% toward the purchase of a car
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If you borrow $14,000 for four years at 7% interest to purchase a car, you would have to pay back a total of $16,656. This includes both the principal amount borrowed and the interest charged over the four-year period. Your monthly payments would be approximately $347. With this information, you can budget accordingly and ensure that you are able to make your payments on time.
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