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07-10-2022
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suppose you purchase a tv with the listed price of $2,000 from a store. the store offers two payment plans. under the installment plan, you pay 25% down and 25% of the purchase price at the end of each year for 3 years. if you pay the entire bill immediately, you can get a store discount of 5% on the purchase price. which payment plan is cheaper for you in present value terms? assume your discount rate is 3% per year.

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