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The buyer of a certain machine is given 2 options to pay it: 1st option is paying it P2,000 downpayment and P2,000 annually for the

The buyer of a certain machine is given 2 options to pay it: 1st option is paying it P2,000 downpayment and P2,000 annually for the next 6 years; 2nd option is to pay it P3,500 downpayment and P2,000 annually for the next 5 years. If the money is worth 12% cpd. annually, which option is better and by how much?

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