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Assume Ellina earns a 4 percent after - tax rate of return and that she owes a friend $ 1 , 5 0 0 .

Assume Ellina earns a 4 percent after-tax rate of return and that she owes a friend $1,500. Would she prefer to pay the friend $1,500 today or $1,725 in four years? Use Exhibit 3.1.
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