Mathematics, 20.03.2020 10:21, rleiphart1

A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires

for $80 per tire, payable in one year. Another supplier will supply the tires for $20,000 down today,

then $45 per tire, payable in one year. Using the financial formulas learned in FIN316, you determine

that the first option is better. How much less does the first option cost in PV terms? Assume the

interest rate is 8.1%?

a) $860

b) $229

c) $574

d) $1,000

Answers: 1

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A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the...