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You are entitled to receive the following payments. Unless stated otherwise, assume the annual compounding in each question. Use the information below to answer the
You are entitled to receive the following payments. Unless stated otherwise, assume the annual compounding in each question. Use the information below to answer the following question: Which of the following comes closest to the present value of the second payment if the interest rate is 2%? First Payment: $98 today Second Payment: $170 to be received at the end of year 5 Third Payment: $400 to be received at the end of year 10 O $105 $154 $98 $137 O O $113
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