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A Judge Requires Harry to Make a Payment to Sally

Question 18

Multiple Choice

A judge requires Harry to make a payment to Sally.The judge says that Harry can pay her either $10,000 today or $11,000 two years from today.Of the following interest rates,which is the highest one at which Harry would be better off paying the money today?


A) 3 percent
B) 4 percent
C) 5 percent
D) 6 percent

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