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Present value: Your brother has asked you for a loan and has promised to pay you $7,750 at the end of three years. If you
Present value: Your brother has asked you for a loan and has promised to pay you $7,750 at the end of three years. If you normally invest to earn 6 percent per year, how much will you be willing to lend to your brother if you view this purely as a financial transaction (e.g., you don't give your brother a special deal)? |
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