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QUESTION 7 As winner of a competition, you can choose one of the following prices: (a) $100,000 now. (b) $160,000 at the end of five
QUESTION 7 As winner of a competition, you can choose one of the following prices: (a) $100,000 now. (b) $160,000 at the end of five years. (c) $12,500 a year forever. If the interest rate is 12 percent(discrete compounding), which is the most valuable prize? (c) (a) O (b)
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