Your brother has a debt. That he may repay by paying $5,000 now or $10,000 in four

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Your brother has a debt. That he may repay by paying $5,000 now or $10,000 in four years' time. If the interest rate is 14% p.a. compounded monthly.

Would you advise him to repay the debt now or in four years? why?

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Personal Finance

ISBN: 978-0134724713

4th Canadian edition

Authors: Jeff Madura, Hardeep Singh Gill

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Posted Date: Jul 14, 2023 03:01 AM

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Your brother has a debt. That he may repay by paying $5,000 now or $10,000 in four

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Expert Answer:

I would advise my brother to repay the debt now Heres why The present value of 10000 in four years i... View the full answer

Personal Finance

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