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Which Scenario Has a Higher Present Discounted Value (Assume Interest

Question 53

Multiple Choice

Which scenario has a higher present discounted value (assume interest is compounded annually) ; $100 owed in 3 years at 8% interest or $90 owed in 2 years at 7.25 % interest?


A) $100 owed in 3 years
B) $90 owed in 2 years
C) Both scenarios have the same present discounted value
D) Cannot be determined with information provided

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