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Donna and Keith want to sell their business. They have received two offers. If they accept Offer A they will receive $61 000 immediately and
Donna and Keith want to sell their business. They have received two offers. If they accept Offer A they will receive $61 000 immediately and $20 000 in three years. If the accept Offer B they will receive $37000 now and $3000 at the end of every six months for 5 years. Interest is 6.67% compounded annually. A. What is the value for Offer A? B. What is the value for Offer B? C. Which offer is preferred? Offer A or Offer B 1 i BIO % Edward Martin borrowed $15 810.00 from his uncle to finance his graduate studies. The loan agreement calls for equal payments at the end of each month for 6 years. The payments are deferred for 3 years and interest is 8.12% compounded semi-annually. What is the size of the monthly payments? 1 i - BI O - E = %
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