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Assume Ellina earns a 6 percent after - tax rate of return and that she owes a friend $ 1 , 7 0 0 .

Assume Ellina earns a 6 percent after-tax rate of return and that she owes a friend $1,700. Would she prefer to pay the friend $1,700 today or $2,125 in four years? Use Exhibit 3.1.
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