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If a financial advisor offers you two investment options. Both require an initial investment amount of $1,000 today. Option A matures in 1 year and pays $1,200 a year from today. Option B matures in 2 years and pays $1,400 two years from today. If the discount rate is 10%, which investment option is the better deal?

Microeconomics, Economics

  • Category:- Microeconomics
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