3.
a.What is the present value of $200,000 to be paid at the end of 10 years, assuming an 8% interest rate?
b.What is the present value of $20,000 per year for 10 years, assuming an 8% interest rate?
4.
a.What is the present value of $75,000 to be paid at the end of 10 years, assuming a 9% interest rate?
b.What is the present value of $7,500 per year for 10 years, assuming an 9% interest rate?
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