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To Settle a Debt You Have Agreed to Make Payments

Question 31

Multiple Choice

To settle a debt you have agreed to make payments of $200, $500, $700, $900, and $1,200 at the end of years 1- 5 respectively. The appropriate discount rate is 8%. What is the present value of your debt?


A) $2,427
B) $3,500
C) $2,100
D) $2,648

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