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Suppose a Supplier Has an Agreement with a Firm to Be

Question 20

Multiple Choice

Suppose a supplier has an agreement with a firm to be paid $3,500 in 2 years. If the annual interest rate is 4 percent, the supplier would be indifferent between receiving_______ now and waiting 2 years to receive the $3,500.


A) $3,233.46
B) $3,235.95
C) $3,451.32
D) $3,450.45

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