Compare the Economic Values of Two Options Given an Annual

question 268

Multiple Choice

Compare the economic values of two options given an annual rate of 8.5%. Option 1 - $900 in 60 days and $1,200 in 180 days. Option 2 - $925 in 90 days and $1,050 in 120 days. Given the following information, choose the best option.

• A) Option 1 - benefit of $111.85
• B) Option 1 - benefit of $138.45
• C) No difference between options
• D) Option 2 - benefit of $111.85
• E) Option 2 - benefit of $138.45

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Definitions:

Fish in the Sea

A metaphorical expression indicating that there are many options or opportunities available in a given context.

Office Furniture

Office furniture refers to movable objects intended to support various human activities such as seating, working, and storing in an office environment, including desks, chairs, and file cabinets.

Insurable Interest

A concept in insurance policies where the policyholder must have a stake in the insured item's well-being, facing potential loss if it's damaged or lost.

Sellers

Individuals or entities that offer goods, services, or assets for sale to buyers in exchange for money or other considerations.