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My neighbor makes the following offer he will pay you back the money he borrows today over the next 16 years you will make yearly
My neighbor makes the following offer he will pay you back the money he borrows today over the next 16 years you will make yearly payments with the first payment being for 1433 at the end of this year the payments will grow by 18% every year thereafter if the appropriate discount rate is 6% how much would you be willing to lend your neighbor today ?
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