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Assume that 5 years from now you will need RM2000. Your bank compounds interest at a 6% annual rate. If your father were to offer

Assume that 5 years from now you will need RM2000. Your bank compounds interest at a 6% annual rate.

If your father were to offer either to make the payments calculated in part (b= $354.79.) or to give you a lump sum of RM1,050 one year from now, which would you chose?

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