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If you can choose between getting $1000 a year forever versus getting $2000 a year for 15 years, which one would you choose? Assume that
If you can choose between getting $1000 a year forever versus getting $2000 a year for 15 years, which one would you choose? Assume that the average interest rate in the foreseeable future is 5% per year.
A) $1000 perpetuity
B)$2000 annuity
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