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Business, 18.11.2020 16:50 lexus1427

Suppose you win a small lottery and you are given the following choice: You can receive (1)an immediate payment of $10,000 or (2)two annual payments, each in the amount of $5,200,with the first payment coming one year from now, and the second payment coming two years from now. You would choose to take the immediate payment of $10,000 if the interest rate is:. A) 2 percent, but not if the interest rate is 1 percent.
B) 3 percent, but not if the interest rate is 2 percent.
C) 4 percent, but not if the interest rate is 3 percent.
D) 5 percent, but not if the interest rate is 4 percent.

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