Which option is more economical for her and by how much

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Question - Karen has the following two options to receive a loan payment:

Option A: receive $5000 today, or

Option B: receive $3000 today and $2250 one year from now.

If money is worth 3.45% compounded semi-annually, which option is more economical for her and by how much?

Reference no: EM132604305

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