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You will receive 6800 three years from now the discount

You will receive $6,800 three years from now. The discount rate is 10 percent.

a. What is the value of your investment two years from now? Multiply $6,800 x .909 ( one year’s discount rate at 10 percent).

b. What is the value of your investment one year from now? Multiply your answer to part a by .909 (one year’s discount rate at 10 percent).

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