Peter and Reesa can book their Horizon Holiday package at the early-booking price of $3900, or wait four months and pay the full price of $3995. a. Which option should they select if money can earn a 5.25% rate of return? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Peter and Reesa will save $ 68.25 in currect dollars by paying the early-booking price
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Interest = Principal * Rate * Time Interest = $3995 * 0.0525 * (4/12) Interest = $3995 * 0.0525 * 0.3333 Interest = $69.93 Show more…
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