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rate of interest is 10%, a rational person would just as soon receive $1,100 three years from now as what amount today (round to the nearest dollar)?...

If the market rate of interest is 10%, a rational person would just as soon receive $1,100 three years from now as what amount today (round to the nearest dollar)?

a. $ 783.
b. $ 826.
c. $1,000.
d. $1,100.
e. None of the above is correct.

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Solution of CH220310_477879_ACC.doc

Question:If the market rate of interest is 10%, a rational person would just as soon receive $1,100 three
years from now as what amount today (round to the nearest dollar)?
a. $ 783.
b. $ 826.
c....

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