Solutions to Chapter 1
Installment plan: PV = $25 + [$25 ( annuity factor(5%, 3 years)] PV= Pay in full: Payment net of discount = $90. Choose the second payment plan for its lower present value of payments. Installment plan: PV = $25 ( annuity factor(5%, 4 years) PV= Now the installment plan offers the lower present value of payments. 34. a. Solve for C in the ... ................
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