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You have the choice of receiving $120,000 now or $54,000 now and another $84,000 four years from now. In terms of today's dollar, which choice

You have the choice of receiving

$120,000

now or

$54,000

now and another

$84,000

four

years from now. In terms of today's dollar, which choice is better and by how much? Money is worth

5.8%

compounded annually.

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