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Re: Math (in)competence (was: weight vs. mass (was: Units and Con versions))



Howdy-

Lack of math skills come up all the time. For years I have been chuckling
over "1.9% financing or $3000 cash back" ads. If one elects to get the
financing and forgo the $3000 cash back, then the actual interest rate is
much, much higher.

On a $20,000 loan, not getting the cash back raises the effective interest
rate to about 13%, higher than most banks. This assumes a simple loan; many
dealerships actually structure the plan even more obnoxiously using weird
variations on the APR formula.

Marc "Zeke" Kossover