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There is auto insurance company that has two policies for the payment. 1. paying $300 now for the next 6 months 2. paying $55 per

There is auto insurance company that has two policies for the payment.

1. paying $300 now for the next 6 months

2. paying $55 per month forthe same period.

If the market interest rate is 5%, which policy shouldIchoose?

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