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Determine which income stream do choose

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Reference no: EM132493632

You are offered the choice of the following two income streams; -

  1. $7,000 every 2 years in perpetuity with the first receipt immediately.
  2. $2,000 every quarter for 10 years with the first receipt at the end of the first quarter.
  3. The annual interest rate is 6% pa compounded quarterly.

Question 1: Which income stream do you choose?

Reference no: EM132493632

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