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An obligation of $500 falls due at the end of 3 years. Find an equivalent debt at the end of a. 3 months b. 3

An obligation of $500 falls due at the end of 3 years. Find an equivalent debt at the end of

a. 3 months

b. 3 years and 9 months

Show that dated value at t=0 of the three sums: $500, answer of part a and b are equal.

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