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The Magic Pumpkin Limousine Company Wants to Purchase a Car

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Essay

The Magic Pumpkin Limousine Company wants to purchase a car telephone system for one of its automobiles.The telephone vendor has offered to finance the $1,500 purchase over one year in 12 installments,with a total of $140 in interest to be paid on the loan.Magic Pumpkin's bank has offered to finance the purchase with an instalment loan,where $155 in interest will be repaid and payments on the loan must be made quarterly.What are the annual interest rates on these loans?


Definitions:

Income Taxes

Mandatory financial charges imposed by governments on individuals' or organizations' earned income, used to fund public services and governmental operations.

Safety Net

A set of government programs designed to protect individuals from economic hardship.

Poor And Middle-Class

Terms that classify individuals or households based on their economic status, income levels, and ability to access resources.

Harmful Indirect

Referring to unintentional negative effects on the environment or health that are not a direct result of an action but occur as secondary consequences.

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