Question: A store offers two payment plans. Under the installment plan you pay 25% down and 25% of the purchase price in each of the next

A store offers two payment plans. Under the installment plan you pay 25% down and 25% of the purchase price in each of the next three years. If you pay the bill immediately, you can take a 10% discount on the purchase price. Which is the better deal if the interest rate is 5% and why? Note: Start by calculating the present value of an annuity due assuming a price of $1

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