You are purchasing a new car and plan to finance it through your employee credit...
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Accounting
You are purchasing a new car and plan to finance it through your employee credit union. The credit union has offered you two different promissory note plans, as follows:
Option 1: Three years at 6%, with interest payable annually.
Option 2: One year at 5%, renewable each year for up to three more years, at the then-current interest rate. Interest is payable at the end of each year.
Prepare a written report summarizing the advantages and disadvantages of each of these options.
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