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If Uncle MIke promises you $1,000 three years from now and the prevailing annual rate of interest is 5%, what is the value of the
If Uncle MIke promises you $1,000 three years from now and the prevailing annual rate of interest is 5%, what is the value of the money today?
$1,150 | ||
$950 | ||
$885 | ||
$863 | ||
None of these choices are correct. |
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