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Find average level of market interest rates

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Reference no: EM133076746

Answer the following:

1. Assume that the average level of market interest rates is 5%. Use present value calculations to answer the following:

a. Would you rather have $300 today or receive $305 in one year?

b. Would you rather have $300 today or $315 in one year?

c. Would you rather receive $600 in one year or $675 in two years?

Reference no: EM133076746

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