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QUESTION 12: If you were able to earn 10% p.a. interest on money invested in a bank, how much money would you be willing to

QUESTION 12:

If you were able to earn 10% p.a. interest on money invested in a bank, how much money would you be willing to receive in 12 months' time, rather than $1000 now, so that you are indifferent between the two options?

a.$1500

b.$909

c.$900

d.$1100

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