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During your last trip to Vegas, you won the jackpot while playing slots! The Casino administration offers you two options for the payout: 1) to
During your last trip to Vegas, you won the jackpot while playing slots! The Casino administration offers you two options for the payout: 1) to Pay you $100k upfront, and 2) to offer you 12 payments $10k payments starting one year from today. At what interest rate would you be indifferent between the two options? How would your preference change if the interest rate was to be above/below that rate
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