Answer:
The right choice is Esther's
Step-by-step explanation:
Present worth of GH¢ after 3 years is better as its present really worth may be very high than GH¢ a thousand of today. Here fee of interest is not given to compare however GH¢ 3000 after three years will be equivalent to present well worth GH¢ 1000 if charge of interest >44.5% which may be very very excessive. Thus charge of interest > 44.5% Then GH¢ 3000 payable after 3 years could be equivalent to GH¢ 1000 Hence vide has made the proper preference. If interest price >44.5%.
Then Esther's preference will he right. (thinking about time value of money).
H(x) = 1/4x would be the inverse
