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A friend has borrowed $9,000 from you to buy a used Harley Davidson. She promises to repay you according to the following schedule (all payments
A friend has borrowed $9,000 from you to buy a used Harley Davidson. She promises to repay you according to the following schedule (all payments are made at year-end): $1,000 at year 1, $3,000 at year 2, and $5,000 at year 4. Assume the interest rate is 8%, what is the value in todays dollars of this repayment plan?
A. $7,303.39
B. $7,173.09
C. $7,467.10
D. $6,984.60
E. $6,254.40
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