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You are offered an investment that pays $150 in 3 years, $250 in 4 years and $1010 in 10 years. You can borrow/invest at 6.6%
You are offered an investment that pays $150 in 3 years, $250 in 4 years and $1010 in 10 years. You can borrow/invest at 6.6% with quarterly compounding. If you were offered a price of $845 for this investment, would you accept? Show workings.
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