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What value of p would make you indifferent in your choice

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Question - Suppose you have the alternative of receiving either $25,000 at the end of seven years or P dollars today. Currently, you have no need for the money, so you could deposit the P dollars into a bank account that pays 10% interest compounded annually. What value of P would make you indifferent in your choice between P dollars today and the promise of $25,000 at the end of seven years?

Reference no: EM133152975

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