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Let’s say you are to receive a payment of 130 euros 1 year from now and the interest rate (your best investment option) is 30%. What is the present value of that 130 euros?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 12P

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Let’s say you are to receive a payment of 130 euros 1 year from now and the interest rate (your best investment option) is 30%. What is the present value of that 130 euros?

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