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7 A student starting a one year long degree at college is considering two alternative car rental options. Under option 1 , she will pay

7 A student starting a one year long degree at
college is considering two alternative car rental
options. Under option 1, she will pay & 1000
now and then $1300 next year. Under
Option 2, she will pay $2000 now. What is
the maximum discount rate such that the
student chooses option 1 over option 2?
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