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Your mum has promised you a large sum of money. She has offered you the following THREE choices: (i) Accept $90,000 today or, (ii) Accept
Your mum has promised you a large sum of money. She has offered you the following THREE choices:
(i) Accept $90,000 today or,
(ii) Accept $95,000 at the end of next year or,
(iii) Accept $30,000 at the end of every year for the next 3 years.
Assume the interest rate is 10% p.a.
Which option would you select?
Select one:
a.
The $30,000 at the end of every year for 3 years
b.
No difference between the three options
c.
$90,000 today
d.
$90,000 at the end of next year
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