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1. A promise to repay $94,000 three years from now at an interest rate of 8%. 2. An agreement to make three separate annual


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1. A promise to repay $94,000 three years from now at an interest rate of 8%. 2. An agreement to make three separate annual payments of $25,000, with the first payment occurring 1 year from now. The annual interest rate is 5%. Option 1 Table Value Amount Present Value Loan amount Option 2 Table Value Amount Present Value Annual payments

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