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EXERCISE 4 You have $10,000 and the interest rate is r=6%. An alternative investment opportunity tells you that if you give a certain company $10,000

EXERCISE 4

You have $10,000 and the interest rate is r=6%.

An alternative investment opportunity tells you that if you give a certain company $10,000 today, then they will give you back $6,000 in 2 years and another $6,000 in 4 years.

Which investment option should you choose?

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