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At what rate will these options cost the same

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Question - Ralph knows that he is going to have to replace his roof soon. If he has the roof replaced now, it will cost $10,000. He could wait 5 years, but it will then cost him $20,000. At what rate will these options cost the same? This is also known as the break-even point. (Allow two decimals in the percentage but do not enter the % sign.)

If possible may you show how this is done using a BA ii plus calculator, if not the answer alone will suffice.

Reference no: EM133120646

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