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What amount received by rational person

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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. $1,000.
d. $1,100.
e. None of the above is correct.

Show the necessary steps for answer

 

 

Reference no: EM13116541

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