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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 7 percent

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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 7 percent on your funds, calculate the future values of both payments. Use Appendix C to ariswer the question. Round your answers to the nearest dollar. fV(offer 1):5 PV(Otfer 2)5 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. AV (onter 1): $ PV(orfer 2): 5 Which offer will you accept, if you can earn 16 percent on your funds? Why are your answers different? The choices are different as the higher interest rate

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