A telephone system with a disposable value of $1200 after five years can be purchased for $6600.

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A telephone system with a disposable value of $1200 after five years can be purchased for $6600. Alternatively, a leasing agreement is available that requires an immediate payment of $1500, plus payments of $100 at the beginning of each month for five years. If money is worth 12% compounded monthly, should the telephone system be leased or purchased?
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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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