Determine whether the deal is good for given discount rate
Question: You invest $1,000 today and expect to sell your investment for $2,000 in 10 years.
a. Is this a good deal if the discount rate is 6%?
b. What if the discount rate is 10%?Show your solutions.
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You invest $1,000 today and expect to sell your investment for $2,000 in 10 years. a. Is this a good deal if the discount rate is 6%?
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