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You have won the lottery. There are two ways which you can receive your prize. You can either have 1 million in cash now, or you can have 1.2 million that is paid out as follows: $300,000 now, $300,000 in one year's time, $300,000 in two years' time, and $300,000 in three time. The intrest rate is 20%. How would you prefer to receive your prize?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9473589

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