What is the true cost of the refrigerator to you

Reference no: EM131344976

You plan to buy a used refrigerator this year for $200 and to sell it when you graduate in two years. Assuming that you can get $100 for the refrigerator at that time, there is no inflation, and the interest rate is 5%, what is the true cost (your current outlay minus the resale value in current terms) of the refrigerator to you?

Reference no: EM131344976

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