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Q 2.51: Vickie is considering two investment choices. She can receive either end-of-year payments of $6,000 per year or end-of-month payments of $500 per month.

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Q 2.51: Vickie is considering two investment choices. She can receive either end-of-year payments of $6,000 per year or end-of-month payments of $500 per month. If both investments will make payments for 10 years and the rate of return is 6%, which investment is a better deal and why? There is no difference between these two alternatives. B It is better to receive the monthly payments because the present value is greater for that investment. It is better to receive the annual payments because she is earning more compound interest. D It is better to receive the annual payments because the present value is greater for that investment

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