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10) A life insurance policy offers you the following schemes to pay your premiums, for the same identical policy: A) You pay one lump sum

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10) A life insurance policy offers you the following schemes to pay your premiums, for the same identical policy: A) You pay one lump sum of $4,200 today. B) You pay a sum of $5,500 in 5 years. C) You pay $1,000 today and $3,600 in 3 years. If your opportunity cost for all alternatives is 6.2% per year, which payment scheme should you choose to pay your premiums

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