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Howie just won a law suit and has been given the choice of two payout options. Option #1: He can receive $25,000 every six months
Howie just won a law suit and has been given the choice of two payout options. Option #1: He can receive $25,000 every six months for twenty years. Option #2: He can wait and receive $27,000 every six months for twenty years with the first payment coming one and a half years from now. The appropriate discount rate is 9 percent compounded semiannually
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