Which offer should you accept and why

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Reference no: EM131149008

Bank A offers to pay you lump sum of $20,000 after 5 years, if you deposit $9,500 with them today. Bank B, on the other hand, says that they will pay you a lump sum of $22,000 after 5 years, if you deposit $10,700 with them today. Which offer should you accept and why?

Reference no: EM131149008

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