Multiple Choice
If the interest rate is 6%,which of these investments would you prefer?
A) A single payment of $500 in year 3.
B) A payment of $40 a year for 20 years starting in one year's time.
C) A perpetuity of $30 a year starting in one year's time.
D) A payment of $342.17 today
Correct Answer:
Verified
Correct Answer:
Verified
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