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Marcel has just graduated from college and has found a job that will pay him $ 2 5 , 0 0 0 per year at

Marcel has just graduated from college and has found a job that will pay him $

25, 000

per year at the end of each year, but the job is only for

7

years. He is not worried about that because he plans to do an MBA after gaining

7

years experience anyway. What is the value today of his

7 -

year salary assuming that the interest rate is

3 % ?

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