Problemyou go to big georges to buy a new refrigerator for, Ask an Expert

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Problem:

You go to Big George's to buy a new refrigerator for your apartment. The store offers two models, regular (costs $1501) and energy efficient (costs $1702). Both will last for 10 years. The energy efficient refrigerator will save you $40 per year in electricity bills. The rate of interest is 12%.

Required:

Question: What's the present value of the energy saving from the energy efficient model?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148754

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