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Present value for both options

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Marilyn's parents have agreed to help her purchase a new car upon graduation in four years. They have given her two choices. The first choice is that they will give her $3,890 each year for the next four years for her to invest herself.

The second choice is that they will wait four years and give her $17,440. Marilyn can invest the money at a 4% rate.

Present Value for both Options

Reference no: EM131693990

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