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2. Suppose you have the alternative of receiving $ 8,000 at the end of five years or P pesos. Currently, you do not need the
2. Suppose you have the alternative of receiving $ 8,000 at the end of five years or P pesos. Currently, you do not need the money, so you could deposit the P pesos in a bank account that pays 8% compound interest per year. What value of P would make you indifferent to your choice between P dollars today and the promise of $ 8,000 at the end of the five years?
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