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You have two options to buy a real estate: Option 1: to pay $200000 in advance. Option 2: to pay $120000 in advance, $60000 at

You have two options to buy a real estate: Option 1: to pay $200000 in advance. Option 2: to pay $120000 in advance, $60000 at the end of year 1, $50000 at the end of year 2. If the nominal interest rate is 16% compounded monthly, which option is profitable? a) Option 1 b) Option 2
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You have two options to buy a real estate: Option 1: to pay $200000 in advance. Option 2: to pay $120000 in advance, $60000 at the end of year 1 , $50000 at the end of year 2 . If the nominal interest rate is 16% compounded monthly, which option is profitable? a) Option 1 b) Option 2

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