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You are contemplating membership in the St. Swithin's and Ancient Golf Club. The annual membership fee for the coming year is $5,000, but you can

You are contemplating membership in the St. Swithin's and Ancient Golf Club. The annual membership fee for the coming year is $5,000, but you can make a single payment today of $12,750, which will provide you with membership for the next three years. Suppose that the annual fee is payable at the end of each year and the discount rate is 4% Which is the better deal?

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