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ASAP please A local bank offers the following deal: If you pay the bank $100 a year for 10 years (the first payment begins today
ASAP please
A local bank offers the following deal: If you pay the bank $100 a year for 10 years (the first payment begins today and there are totally 10 payments), the bank will pay you $100 a year forever (the first payment will start at the end of the 10th year). If the interest rate available on other deposits is 6 percent, is this a good deal? What is the present value of your profit or loss from this deal? O a. No. The present value of my loss is $194.65. O b. Yes. The present value of my profit is $206.33. c. Yes. The present value of my profit is $100. d. Yes. The present value of my profit is $194.65. Clear my choiceStep by Step Solution
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