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A friend wants to borrow $10,000 from you today. She says she will pay back the loan in three installments: $2000 one year from now, $4000 two years from now, and $5700 three years from now. If the annual interest rate you wish to charge is 5%, how much would you gain or lose in present value terms if you agree to her terms?

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Financial Management, Finance

Category:- Financial Management
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