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The present value of $1,000 discounted at the rate of 5% per year, to be received at the end of 3 years is equal to

The present value of $1,000 discounted at the rate of 5% per year, to be received at the end of 3 years is equal to

$1,000 - ($1,000) .03 5.

$1,000/(1.03)5.

$1,000 (1.05)3.

$1,000/(1.05)3.

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