You can purchase a residential building lot for $60,000 cash or for $10,000 down and month-end payments of $1,000 for five years. If money is worth 7.5% compounded monthly, which option should you choose?

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Tarman Kandhola · Accepted Answer

Final Answer : Choose the 5-year-payment option; better by $94.69

You can purchase a residential building lot for $60,000 cash or for $10,000 down and month-end payments of $1,000 for five years. If money is worth 7.5% compounded monthly, which option should you choose?

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