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x=5 y=0 z=8 Cansu won a prize in a quiz show she participated in....

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Finance

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x=5 y=0 z=8

Cansu won a prize in a quiz show she participated in. The organizing committee of the competition presented Cansu with 2 alternatives as a reward. The first alternative is to pay Cansu up to P1 at the moment, while the second alternative is to make the following payments to Cansu for 10 years: - $9,000 at the end of 1 year - A1 at the end of the 2nd year - A1 * (1.06) at the end of the 3rd year - At the end of the 4 th year A1 * (1.06)2 - At the end of the 5 th year A1(1.06)3 - At the end of the 6th year A1(1.06)4 - At the end of the 7 th year A1(1.06)5 - At the end of the 8 th year A1(1.06)6 - At the end of the 9 th year A1(1.06)7 - At the end of the 10 th year A1 * (1.06)8 Based on this information, which alternative should Cansu choose? The annual interest rate is 6% for the first 5 years, and the annual interest rate is 8% for the following years. P1=16.000+1.000X($)A1=1.200+100Y($)

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