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If the interest rate is 8%, which of these investments would you prefer? A. A perpetuity of $40 a year B. A payment of $342.17
If the interest rate is 8%, which of these investments would you prefer?
| A. | A perpetuity of $40 a year | |
| B. | A payment of $342.17 today | |
| C. | A single payment of $600 in year 3 | |
| D. | A payment of $40 a year for 20 years |
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