Question
1 point) Sara wishes to purchase a stereo system. She is offered the following payment options: Option 1: $ 0 down $ 420 in 1
1 point) Sara wishes to purchase a stereo system. She is offered the following payment options: Option 1: $ 0 down $ 420 in 1 year $ 300 in 2 years Option 2: $ 85 down $ 235 in 1 year $ 400 in 2 years Determine the range of interest rates for which the present value of Option 2 is less than the present value of Option 1. Lower limit of range = ? Upper limit of range = ?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
6th Edition
0077211332, 9780077211332
