Suppose that we are considering two investments, A and B. Investment A pays $100 now...
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Suppose that we are considering two investments, A and B. Investment A pays $100 now and will also pay $200 next year. Investment B pays $0 now, and will generate $313 next year. Which is the better investment if the annual interest rate is 2%? If it is 20%? Explain
Suppose that we are considering two investments, A and B. Investment A pays $100 now and will also pay $200 next year. Investment B pays $0 now, and will generate $313 next year. Which is the better investment if the annual interest rate is 2%? If it is 20%? Explain
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