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A young graduate has been offered a time-share on a condo in Steamboat Springs, Colorado. To be a part owner, the graduate must pay $1,506.00
A young graduate has been offered a time-share on a condo in Steamboat Springs, Colorado. To be a part owner, the graduate must pay $1,506.00 at the end of each year for the next 19.00 years. If the graduates discount rate is 7.00%, what is the cost of this opportunity in todays dollars? In other words, what is the most the graduate should be willing to pay today instead of making payments?
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