Having proved yourself to be an exemplary student, University offers you a choice between an outrigh… Show more Having proved yourself to be an exemplary student, University offers you a choice between an outright gift of $1,000, or a $7,000 interest free loan to be paid back in seven equal annual installments of $1,000 each. a. Which alternative do you prefer if your discount rate is 3%? b. Which alternative do you prefer if your discount rate is 10%? c. At what discount rate your will be indifferent between the two alternatives? • Show less