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Example Suppose annual interest rate is 6% and interest compounded annually. (a) You are paid $20,000 today. What is the future value of this payment

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Example Suppose annual interest rate is 6% and interest compounded annually. (a) You are paid $20,000 today. What is the future value of this payment three years from now? (b) You will receive $20,000 three years from today. What is the present value of this future payment

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