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Your friend wants to borrow $5,500 from you and gives you three options for repayment. Assuming a discount rate of 4.5%, which of the following
Your friend wants to borrow $5,500 from you and gives you three options for repayment. Assuming a discount rate of 4.5%, which of the following options should you choose?
Option A: $1,600 a year for the next 4 years
Option B: $7,000 lump sum paid 3 years from now
Option C: $750 a year for the next 12 years
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