ou are considering purchasing a refrigerator that costs $2,500 up front or $3,000 in 1 year. At what discount rate would it be a smarter deal to pay the $3,000 next year?   a. 25%   b. 5%   c. 10%   d. 15%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You are considering purchasing a refrigerator that costs $2,500 up front or $3,000 in 1 year. At what discount rate would it be a smarter deal to pay the $3,000 next year?

  a.

25%

  b.

5%

  c.

10%

  d.

15%

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