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Option A An annual payment of $1,000 for three years at the end of each year, and $1,200 for an additional ten years starting at
Option A An annual payment of $1,000 for three years at the end of each year, and $1,200 for an additional ten years starting at the end of the fourth year. Option B A one-time lump-sum payment of $10,000 at the end of the first year. a. If the annual interest rate is 5%, which option would you prefer?
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