Assume the interest rate is 6 per cent. In each of the following three cases, state which
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Assume the interest rate is 6 per cent. In each of the following three cases, state which you would rather receive and briefly explain why:
a. €200 today or €480 in two years?
b. €205 today or €240 in one year?
c. €1,000 in one year or €1,220 in two years?
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To determine which option to choose in each case we need to consider the time value of money The tim...View the full answer
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