The interest rate is 12 percent. Which offer should you choose?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 8Q
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You are selling your house. The Smiths have offered you $200,000. They will pay you
immediately. The Joneses have offered you $275,000, but they can not pay you until three years
from today. The interest rate is 12 percent. Which offer should you choose?

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