Rocky and Adrien are selling their house. Offer #1 puts $8000 down and pays the lump sum of $143282 in 4 months. Offer #2 puts $8000 down and pays the lump sum of $153881 in 13 months. At what rate of interest would Adrien and Rocky be indifferent to the two offers (use today as a focal date)?

Answer rating: 100% (QA)

To compare the two offers need to calculate their present values as of today Lets assume that the an... View the full answer