=+2. You are offered the choice of two payment streams: (a) $150 paid one year from now
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=+2. You are offered the choice of two payment streams:
(a) $150 paid one year from now and $150 paid two years from now;
(b) $130 paid one year from now and
$160 paid two years from now. Which payment stream would you prefer if the interest rate is 5 percent? If it is 15 percent?
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