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Nicholas Can Purchase the Same Furniture from Store a for $2,495

Question 188

Short Answer

Nicholas can purchase the same furniture from Store A for $2,495 cash or from Store B for $2,560 with nothing down and no payments or interest for 8 months. Which option should Nicholas choose if he can pay for the furniture by cashing in Canada Savings Bonds currently earning 3.9% per annum?

Correct Answer:

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loan = 3.91%; the tw...

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