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Frank is facing a choice. He wants both a newer car and to spend a month in Europe; each costs $6,000. He has decided he will use credit now for one of his options and save his money for three years to pay for the other. Option 1: Use credit now to purchase a newer car and save for a vacation in three years. Option 2: Use credit now to pay for a European vacation and save to purchase a newer car in three years. Explain to Frank how each option will affect his net worth and then make a recommendation for which option he should choose.
Sagot :
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