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A unit in Darwin can be purchased now for $160,000 cash, or an $80,000 deposit and $110,000 payable five years from today. If interest rates

A unit in Darwin can be purchased now for $160,000 cash, or an $80,000 deposit and $110,000 payable five years from today. If interest rates are 9% p.a. compounding monthly, which method of payment is better? Explain.

Answer: Second option. Why is it the second option?

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