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The Ferrari FX super car is expected to be available by October 2017. The cost is 985,000 and 100,000 deposit is required now to make
The Ferrari FX super car is expected to be available by October 2017. The cost is 985,000 and 100,000 deposit is required now to make a booking. Assume a buyer pays the 885,000 balance 3 years after making the 100,000 deposit. At an interest rate of 10% per year, what is the effective total cost of the super car in year 3?
A. 1,311,035
B. 1,018,100
C. 1,177,935
D. 1,277,935
E. 1,211,035
F. 985,000
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