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You buy a motorboat worth $13,400. You can pay cash, or chose one of two payment options: Option 1: Pay $10,000 in one year and
You buy a motorboat 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 at 9% interest compounded monthly, which one should you take, and how much cheaper is it compared to paying cash?
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