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Which is the best choice for Andi

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Question - Andi has just won a lottery with a prize of 5 million rupiah. He is given 2 options in receiving his prize, the first to receive 2.6 million now, or the second option to receive 200 thousand at the end of each year for the next 25 years. If Andi has an investment opportunity with an interest rate of 7% per year with inflation of 5% a year, which is the best choice for Andi?

Reference no: EM133008083

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