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Sally wishes to purchase a stereo system. She is offered the following payment options: Option 1: $0 down $432 in 1 year $300 in 2

Sally wishes to purchase a stereo system. She is offered the following payment options: Option 1: $0 down $432 in 1 year $300 in 2 years Option 2: $82.56 down $250 in 1 year $400 in 2 years Determine the range of interest rates for which the present value of Option 1 is less than the present value of Option 2

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