Item$8$

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Item $8$

Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $$1,900$ with payment due today. The second store offers the two ovens for $$2,100$ due in one year.

Required:

$1-$a$.$ Assuming an annual discount rate of $9\%,$ calculate the present value.

$1-$b$.$ From which store should Ray and Rachel buy their ovens?