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Annuities: Present Value 6. Your uncle named you as the beneficiary of his life insurance...

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Finance

Annuities: Present Value

6. Your uncle named you as the beneficiary of his life insurance policy. The insurance company gives you a choice of AED300,000 today or a 15-year annuity of AED30,000 at the end of each year.

Which one will you accept, if the discount rate is 7%. Why?

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