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You are offered $1,000 after four years (Offer 1) or $200 a year for four years (Offer 2 ). If you can earn 6 percent
You are offered $1,000 after four years (Offer 1) or $200 a year for four years (Offer 2 ). If you can earn 6 percent on your funds, calculate the future values of both payments. Use Appendix C answer the question. Round your answers to the nearest dollar. FV(offer1):$ FV (ofter z): \$ Which offer will you accept? If you can earn 16 percent on your funds, calculate the future values of both payments. Use Appendix C to answer the question. Round your answers to the nearest dollar. FV(olfer 1): $ AV(offer2):$ Which offer will you accept, if you can eam 16 percent on your funds? Why are your answers different? The choices are different as the higher interest rate
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