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Please explain how to do this by hand (w/o a financial calculator): Suppose you have a choice between receiving a lump-sum payment of $10,000 today or four annual payments of $2,750 (with the first payment one year from today). Of the following, which is the highest annual interest rate at which you would prefer the four annual payments over the lump-sum payment? 2% 5% 7% 10%
Apr 03 2020 View more View Less
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