(Answered) When shopping for the latest lcd tv you have been offered

Finance

When shopping for the latest LCD TV you have been offered the same TV with two different terms of purchase.

Option 1: Pay $1,000 now and 4 annual installments of $2,000 each, with the first payment starting at the end of the 2^nd year.

Option 2: Pay $7,000 cash today.

If the stores financing rate is 8% EAR, which option should you choose?

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