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A $ 7 , 4 0 0 payment to be made 5 years in the future is equivalent to receiving today; and $ 7 ,

A $

7, 400

payment to be made

5

years in the future is equivalent to receiving

today; and $

7, 400

paid today

is equivalent to

paid

5

years in the future if market interest rates are

5.75

percent.

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