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Your friend has asked to borrow $2,000 from you to start up a business and has promised to pay it back in installments of $600
Your friend has asked to borrow $2,000 from you to start up a business and has promised to pay it back in installments of $600 in one year, $700 in two years, and $1,000 in 5 years. If you require a return equal to the market rate of 5%, will you lend the $2000 to your friend?
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