Suppose you have the alternative of receiving either $22,000 at the end of five years or P
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Suppose you have the alternative of receiving either $22,000 at the end of five years or P dollars today. Currently, you have no need for money, so you could deposit the P dollars in a bank that pays 5% interest. What value of P would make you in different in your choice between P dollars today and the promise of $22,000 at the end of five years?
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P 22000 ...View the full answer
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