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Assume a rate of interest of 10 per cent. We have a debt to pay and are given a choice of paying Rs 1,000now or

Assume a rate of interest of 10 per cent. We have a debt to pay and are given a choice of paying Rs 1,000now or some amount X five years from now.

What is the maximum amount that ) can be for us to be willing todefer payment for five years?

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