Fight Finance

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keithphw$6,001.61
cuiting1$2,014.70
Jade$1,805.80
Yuan$1,726.43
Emma Lu$1,683.33
Visitor$1,663.33
zy$1,649.70
Visitor$1,635.80
Zin$1,629.43
Carolll$1,612.43
Visitor$1,508.61
Tram Phan$1,503.33
cuiting$1,465.80
Visitor$1,443.33
Visitor$1,428.33
Visitor$1,338.35
Visitor$1,323.33
Visitor$1,283.33
Visitor$1,251.28
Tijo$1,089.43
 

Question 2  NPV, Annuity

Katya offers to pay you $10 at the end of every year for the next 5 years (t=1,2,3,4,5) if you pay her $50 now (t=0). You can borrow and lend from the bank at an interest rate of 10% pa, given as an effective annual rate.

Ignore credit risk.

Will you or Katya's deal?



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