Effective interest rates that would in fact make

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Reference no: EM13868519

You have just put your house up for sale. The agent tells you that two offers have been made: (1) 400,000 now and 400,000 in 2 years; and, (2) 287,500 now, 237,500 in 1 year and 275,000 in 2 years. Your agent says that one offer seems “just as good” as the other. There are actually 2 (yearly) effective interest rates that would in fact make this true. Find those.

Reference no: EM13868519

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