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You buy a motor boat worth $13,400. You can pay cash, or chose one of two payment options: Option 1: Pay $10,000 in one year
You buy a motor boat worth $13,400. You can pay cash, or chose one of two payment options: Option 1: Pay $10,000 in one year and $5000 in two years Option 2: Pay $17,400 in 3 years If the interest rate on both options is j12=9%, which one should you take and how much cheaper is it compared to paying cash? A. 1,$78.46 B. Best option is to pay cash C. 2,$103.81 D. 1,$17.19
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