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Will present value of your winnings using an interest rate

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Present value of an annuity

Assume the same data as in Appendix 1 Exercise 14-19, except that the current interest rate is 13%. Will the present value of your winnings using an interest rate of 13% be onehalf the present value of your winnings using an interest rate of 6.5%? Why or why not?

Reference no: EM13512585

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