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Strapped for cash, your neighbour makes you the following offer. He will pay you back the money he borrows today over the next 16 years.

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Strapped for cash, your neighbour makes you the following offer. He will pay you back the money he borrows today over the next 16 years. He 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 neighbour today? (Note: retain at least four places of a decimal in your calculation) Select one O a 554475.94 On $14481.75 O 0 57397.65 d. The growth rate is greater than the discount rate, therefore, this cannot be solved OS-11941 67

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