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Martha left an inheritance to her grandson that will pay him $1,500 on the first day of every other year. When computing the PV of

Martha left an inheritance to her grandson that will pay him $1,500 on the first day of every other year. When computing the PV of this inheritance, the grandson should use:

A) Simple Interest

B) a 2-year discount rate

C) an effective annual rate

D) a semiannually compounded discount rate

E) a semiannual discount rate

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