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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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