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You will receive a payment of $5,000 six years from now. Your friend is willing to pay you $4,500 now in exchange for your future
You will receive a payment of $5,000 six years from now. Your friend is willing to pay you $4,500 now in exchange for your future payment. Assuming a discount rate of 4% (compounded), which is worth more today, the payment of $5,000 in six years or your friend's payment today of $4,500?
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To determine which option is worth more today we need to calculate the present value of the f...
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Basic Finance An Introduction to Financial Institutions Investments and Management
Authors: Herbert B. Mayo
10th edition
1111820635, 978-1111820633
