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Business, 11.02.2020 05:32 kasper04

Suppose you are planning to spend $1,768 annually for vacation during the next 30 years. You are offered to pay $30,000 now so that annual expenses of your vacations for the next 30 years will be taken care of. The annual interest rate is 7%. Calculate the amount that is saved if you pay $1,768 annually instead of $30,000 now (Hint: calculate 30,000 - PV($1,768 paid annually)). Submit the absolute value of the difference in the two options.

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