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2 votes
Pretend today is your birthday, and you're hoping for some money. But your grandma is a finance professor and likes making things difficult for you. She tells you that she'll either give you $1,500 today, or give you $550 each year at the end of the year for the next 3 years. If the applicable discount rate is 6%, should you take the $1,500?

User Eleuteron
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4.7k points

2 Answers

2 votes

Answer:

I’ll just stay with the 550 a year

Explanation:

User Ninja Dude
by
5.2k points
5 votes

Answer:

no, the 550 each year is best offer

Explanation:

User Fisker
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5.2k points