Which do you prefer: (1) receiving $1,000 in five years when the interest rate is 3...

  

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Which do you prefer: (1) receiving $1,000 in five years when the interest rate is 3 percent per quarter or (2) receiving $1,500 in six years when the interest rate is 6 percent every six months? Explain with reasoning Which do you prefer: (1) receiving $1,000 in five years when the interest rate is 3 percent per quarter or (2) receiving $1,500 in six years when the interest rate is 6 percent every six months? Explain with reasoning

Answer rating: 100% (QA)

To determine which option is more favorable we can calculate the future value of each option and com... View the full answer