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A rich distant relative recently passed away and she left you something in her will. You can have $50,000 in cash in 10 years or,
A rich distant relative recently passed away and she left you something in her will. You can have $50,000 in cash in 10 years or, you can inherit one of her investments (currently worth $25,000) that is guaranteed to earn 8.5% per year but doesn't mature for 10 years. Which one would be worth more?
Question 23 options:
| the investment because it will be worth $56,524. |
| the investment because it will be worth $113,049. |
| the cash because it is worth $25,000 more today. |
| the cash because the investment will only be worth $46,250. |
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