Which interest rate will an individual be indifferent

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Reference no: EM13739514

At which interest rate will an individual be indifferent between receiving $50 per year every year forever (starting one year from now), and receiving $1000 today?

The answers are:

A. 2.5%

B. 5%

C. 10%

D. 7.5%

Reference no: EM13739514

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