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You can buy a pizzeria. The last two years of lockdown have been difficult for the restaurant sector and the owner needs money. She
You can buy a pizzeria. The last two years of lockdown have been difficult for the restaurant sector and the owner needs money. She is asking you to pay either 1) 8,000 per year for the next 10 years (at the end of each year), 2) 75,000 upfront, today or 3) three instalments, 25,000 at the end of year 1, 25,000 at the end of year 3, and again 25,000 at the end of year 6. Imagine that your grandparents are willing to lend you at 3.0% per year. Which option do you prefer? OA. I prefer paying 75,000 today OB. I prefer paying 8,000 for each of the next 10 years O C. I prefer paying in three instalments of 25,000at the end of years 1, 3 and 6
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