Two rival football fans have made the following wager: if their college football team wins the conference

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Two rival football fans have made the following wager: if their college football team wins the conference title outright, the other fan will donate $1,000 to the winning school. Both schools have had relatively unsuccessful teams but are improving each season. If the two fans must put up their potential donation today and the discount rate is 8% for the funds, what is the required upfront deposit if a team is expected to win the conference title in five years? Ten years? Twenty years?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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