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Decision making: Deal 1: An item can be purchased for $7850. Deal 2: The same item...

Decision making:

Deal 1: An item can be purchased for $7850.

Deal 2: The same item can be purchased for $2355.00 down and $84.11 at the end of each month for 7 years.

If money is worth 6.25% compounded monthly to you...

a. Deal 1 is better, by how much now?

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Answer #1

C7 fx --PV(C2,C3,C4, C5, C6) A B с D 1 2 RATE(i/y) 3 NPER(n) 4 PMT 0.005208333 0.0625/12 84 7*12 84.11 Rate Per Period Total

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