After years of working hard and finally becoming a millionaire, you would like to reward yourself by buying a sports car. Dealer A offers a model that you like for just RM1.8 million, if purchased and...


After years of working hard and finally becoming a millionaire, you would<br>like to reward yourself by buying a sports car. Dealer A offers a model<br>that you like for just RM1.8 million, if purchased and fully paid now. Dealer<br>B offers the same model for RM2 million, but you can pay for the car after<br>2 years of ownership. Determine which offer is economically better,<br>considering interest rate of 5% per year. Explain your answer.<br>

Extracted text: After years of working hard and finally becoming a millionaire, you would like to reward yourself by buying a sports car. Dealer A offers a model that you like for just RM1.8 million, if purchased and fully paid now. Dealer B offers the same model for RM2 million, but you can pay for the car after 2 years of ownership. Determine which offer is economically better, considering interest rate of 5% per year. Explain your answer.

Jun 03, 2022
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