Question
Peter and Reesa can book their Horizon Holiday package at the early-booking price of $3800, or wait five months and pay the full price of
Peter and Reesa can book their Horizon Holiday package at the early-booking price of $3800, or wait five months and pay the full price of $3900.
(a)Which option should they select if money can earn a 6.5% rate of return? You must show your work.
(b)At what interest rate would they be indifferent between the two prices?
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Basic Finance An Introduction to Financial Institutions, Investments and Management
Authors: Herbert B. Mayo
11th Edition
1285425790, 1285425795, 9781305464988 , 978-1285425795
