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Financee and the store is offering two choices for payment

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John wants to by a diamond ring for his Financee and the store is offering two choices for payment: a) pay $5000 cash now or (beer) pay $250 per month over 2 years. If John interest rate is 15% annually, which is the better option and how much does John save by making the better decision?

Reference no: EM131992495

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