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Explain option to invest the money with a real interest rate

Several years ago John McGregor bought an endowment insurance policy that is about to mature. He has the option of receiving £20,000 now or £40,000 in 10 years' time. Because he has retired and pays no income tax, he could invest the money with a real interest rate expected to remain at 10% a year for the foreseeable future. Which option should he take?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Explain option to invest the money with a real interest rate

Reference No:- TGS0552915

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Explain option to invest the money with a real interest rate

Reference No:- TGS0552915

Recent Questions Asked Finance Basics

Q : Requirements for clinical competencies

Q : How much will initial investment be worth at the end of year

Q : How the classic communication model applies

Q : Hutton-roots and meanings of orozcos zapata

Q : Explain option to invest the money with a real interest rate

Q : Individual capital components

Q : Question regarding ore inc

Q : What depreciation rate reduce machine''s value after years

Q : Discuss sima qian views of the leaders

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