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Two employees of a real estate company prepare bids for the purchase of land.

Offer A is for an immediate cash purchase of $200.000. Offer B is for $66,000 cash down payment and the purchase of
an annuity with an annual rate of 8% compounded quarterly yielding payments of $8040 to be paid quarterly on behalf of
the company for 5 years.

(a) Determine which offer requires the lesser amount of money
(b) find the difference between the cash values of the two offers.

User Smashing
by
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1 Answer

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Answer:

offer b is lower and the diffrenc eis 1,235

Explanation:

User Feganmeister
by
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