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Apples, Oranges and Auto-Financing

By Lawrence Weiss
Published 01 Jan 1994
Reference 4319
Topic Economics & Finance
Industry Financial Services
Region Europe
Length 1 page(s)
Language English
Inspection copy
6.00
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Summary

The case demonstrates the importance of understanding the difference between a lump sum invested over time and an annuity. The case is based on a real event. Auto dealers in the US were fraudulently using a computer program, which made an unfair interest rate comparison, to convince car buyers to finance their purchases.

About the author

Lawrence Weiss


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