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Tommy John is going to receive $250,000 in three years. The current market rate of interest is 6%. a. Using the present value of $1

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Tommy John is going to receive $250,000 in three years. The current market rate of interest is 6%. a. Using the present value of $1 table in Exhibit 8, determine the present value of this amount compounded annually. Round to the nearest whole dollar. $ b. Why is the present value less than the $250,000 to be received in the future? The present value is less due to 1 over the 3 years

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