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A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires for $85 per tire, payable in

A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires for

$85

per tire, payable in one year. Another supplier will supply the tires for

$20,000

down today, then

$55

per tire, payable in one year. What is the difference in PV between the first and the second offer, assuming interest rates are

8.3%?

A.

$5,069

B.

$1,352

C.

$3,380

D.

-5,069

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