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Question 1 You have a choice between receiving $500 now or $530 in six months' time. Current interest rates are 10% p.a. (simple interest). a)

Question 1 You have a choice between receiving $500 now or $530 in six months' time. Current interest rates are 10% p.a. (simple interest). a) As a rational investor, which option would you choose and why? b) Calculate the minimum interest rate p.a. that would reverse your choice above

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Foundations of Finance The Logic and Practice of Financial Management

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