Question

Which is a better investment mathematically 3% per year compounded monthly or 3.2% per year simple interest?
Given that (1+0.0025) 2= 1.0304.
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Answer 1

Step-by-step explanation:

It is a common practice to exchange a used PPE asset for a new one. This is known as a trade-in. The value of the trade-in agreed by the purchaser and seller is called the trade-in allowance. This amount is applied to the purchase price of the new asset, and the purchaser pays the difference. For instance, if the cost of a new asset is $10,000 and a trade-in allowance of $6,000 is given for the old asset, the purchaser will pay $4,000 ($10,000 – 6,000).