Determine loan without interest for four years

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Reference no: EM13187305

The market interest rate is 10 percent and is expected to stay at that level. Explain your choice in each of the following situation:
a. Would you prefer $500 gift today or $540 gift next year?
b. Would you prefer a $100 gift now or $500 loan without interest for four years?
c. Would you rather have $1 million today or $50,000 per year for eternity?

Reference no: EM13187305

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