You have received two offers on the used car you wish to sell. Mr. Lindberg is offering $9500 cash, and Mrs. Martel's offer is five semi-annual payments of $2,000 including one on the purchase date. Which offer has the greater economic value using a discount rate of 5% compounded semi-annually? What is the economic advantage in current dollars of the preferred alternative?

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The Answer of You have received two offers on the used car you wish to sell. Mr. Lindberg is offering $9500 cash, and Mrs. Martel's offer is five semi-annual payments of $2,000 including one on the purchase date. Which offer has the greater economic value using a discount rate of 5% compounded semi-annually? What is the economic advantage in current dollars of the preferred alternative?

You Have Received Two Offers on the Used Car You