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The prevailing interest rate is 7.5 percent. Suppose you purchase an asset that promises to pay $400 three years from now, $450 three years
The prevailing interest rate is 7.5 percent. Suppose you purchase an asset that promises to pay $400 three years from now, $450 three years after that, and $X two years after that. If you purchased the asset for $923, what is X? (you can round a bit)
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PV formulaFVIi n PV of 400 in 3 years PV 400100...
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
