A business associate who owes you 3000 offers to pay you


Question: A business associate who owes you $3000 offers to pay you $2800 now, or else pay you three yearly installments of $1000 each, with the first installment paid now. If you use only financial reasons to make your decision, which option should you choose? Justify your answer, assuming a 6% interest rate per year, compounded continuously.

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Mathematics: A business associate who owes you 3000 offers to pay you
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