Question
You have a choice between receiving $500 now or $530 in six months' time. Current interest rates are 10% p.a. (simple interest). a) As a
You have a choice between receiving $500 now or $530 in six months' time. Current interest rates are 10% p.a. (simple interest).
a) As a rational investor, which option would you choose and why?
b) Calculate the minimum interest rate p.a. that would reverse your choice above.
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Using Microsoft Excel and Access 2016 for Accounting
Authors: Glenn Owen
5th edition
1337109048, 1337109045, 1337342149, 9781337342148 , 978-1337109048
