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1. Read these two statements: a. John invests $1,000 today at 6%. How much will John's investment grow to in five years? b. Mary is
1. Read these two statements: a. John invests $1,000 today at 6%. How much will John's investment grow to in five years? b. Mary is looking at an investment that will pay her $4,000 in two years. How much should Mary pay for this investment if she demands a rate of return of 6%? Which one of these is a future value problem? Which one is a present value problem?
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