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A&B Appliances Sells a Washer-Dryer Combination for $1535 Cash

Question 174

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A&B Appliances sells a washer-dryer combination for $1535 cash. C&D Appliances offers the same combination for $1,595 with no payments and no interest for 6 months. Therefore, you can pay $1,535 now or invest the $1535 for 6 months and then pay $1,595. What value would the annual rate of return have to exceed for the second alternative to be your advantage?

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