Auniversity of iowa basketball standout is offered a choice of contracts by the new york liberty.
the first one gives her $100,000 one year from today and $100,000 two years from today. the second
one gives her $132,000 one year from today and $66,000 two years from today. as her agent, you must
compute the present value of each contract. which of the following interest rates is the lowest one at
which the present value of the second contract exceeds that of the first?
a. 7 percent
b. 8 percent
c. 9 percent
d. 10 percent
a. 7 percent
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Auniversity of iowa basketball standout is offered a choice of contracts by the new york liberty.
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