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You require an 8 percent annual return on your investments and face two options. You can get $20,000 10 years later (as a lump sum)
You require an 8 percent annual return on your investments and face two options. You can get $20,000 10 years later (as a lump sum) of receive $3000 a year for the next 4 years. How much more valuable is the correct choice? (Hint: To compare the two options and determine which one is more valuable, you need to calculate the present value of each option and then compare the values.)
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