Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

You want to treat yourself to a new sports car. The car dealership gives you two choices. You can pay $70,000 cash now or pay it in three instalments: $40,000 now and $20,000 at the end of each of the next two years. If your cost of money is 9%, which do you prefer? Explain and show your answer.