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    Personal Financial Planning Study Set 3
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    Exam 2: Time Value of Money
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    Paul Has Promised to Pay Lucy $25,500 in Seven Years
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Paul Has Promised to Pay Lucy $25,500 in Seven Years

Question 7

Question 7

Multiple Choice

Paul has promised to pay Lucy $25,500 in seven years if she gives him $10,000 today.What discount rate is Paul using?


A) 12.45%
B) 13.54%
C) 14.31%
D) 15.45%
E) 10.43%

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