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A person has two options for buying an asset: 1) pay 30,000 in cash now or 2) pay 12,000 now, 12,000 in two years and

A person has two options for buying an asset: 1) pay 30,000 in cash now or 2) pay 12,000 now, 12,000 in two years and 12,000 in five years. If interest rates were 8% in years one, two and three and 6% in years four and five and there is monthly compounding, which option is better? Please show all work.

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