You are offered the choice of the following two income streams;- $10,000 every 2 years in perpetuity
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Question:
You are offered the choice of the following two income streams;-
$10,000 every 2 years in perpetuity with the first receipt immediately.
$2,500 every quarter for 10 years with the first receipt at the end of the first quarter.
The annual interest rate is 6% pa.
Which income stream do you choose?
(Answer to the nearest dollar)
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