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What does sx have to be for to be indifferent

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Problem 1: The nominal annual interest rate is 8% compounded monthly. Deal A: You loan me $5000 today and I pay you back $2000 in 1 year, and $4000 in 2 years. Deal B: I loan you $1000 today and another $3000 in 1 year and you pay me $X in 2 years. What does SX have to be for you to be indifferent between these two deals?

Reference no: EM132659121

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