3 Suppose that r, the annual interest rate, is 0.20, and that all money in the bank...

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3 Suppose that r, the annual interest rate, is 0.20, and that all money in the bank earns 20% interest each year (that is, after being in the bank for one year, $1 will increase to

$1.20). If we place $100 in the bank for one year, what is the NPV of this transaction?

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