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Old 07-02-2003, 05:59 PM  
traffic addict
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Join Date: Mar 2003
Location: UK
Posts: 3,312
P=A{[1-(1+r)^(-n)]/r}

So the present value of each offer is:
Pa = 2250*{[1-(1+0.08)^(-40)]/0.08} = 26,830.38
Pb= 25,772.68

So you should go for A
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