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A company has the following payment options to settle a loan: Option A: pay $19,000 today, or Option B: pay $10,000 today and $9500 in
A company has the following payment options to settle a loan:
Option A: pay $19,000 today, or
Option B: pay $10,000 today and $9500 in one year.
If money earns 4% compounded daily, which option is more economical for the company and by how much?
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