You buy a motor boat worth $13,400.You can pay cash,or chose one of two payment options:
Option 1: Pay $10,000 in one year and $5000 in two years
Option 2: Pay $17,400 in 3 years
If the interest rate on both options is j₁₂ = 9%,which one should you take and how much cheaper is it compared to paying cash?

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The Answer of You buy a motor boat worth $13,400.You can pay cash,or chose one of two payment options: Option 1: Pay $10,000 in one year and $5000 in two years Option 2: Pay $17,400 in 3 years If the interest rate on both options is j₁₂ = 9%,which one should you take and how much cheaper is it compared to paying cash?

You Buy a Motor Boat Worth $13,400