Suppose the annual discount rate is 12%. Receiving $100 two years from now is equivalent to receiving approximately ________ today.
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Step 1
Step 1: Calculate the present value of $100 received two years from now using the formula for present value: PV = FV / (1 + r)^n where PV is the present value, FV is the future value, r is the discount rate, and n is the number of years. Show more…
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