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John Can Purchase an Airline Ticket for $540 Now or Can

Question 172

Multiple Choice

John can purchase an airline ticket for $540 now or can pay $578 in 90 days. If interest is 6.6%, determine whether John should purchase the ticket now or in 90 days.


A) Buy now - savings of $28.74
B) Buy now - savings of $34.22
C) No difference between the two options
D) Buy later - savings of $28.74
E) Buy later - savings of $34.22

Correct Answer:

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