How much is that promise worth
Problem
We promise to pay you $500 at the end of each of the next 5 semesters. If you estimate that you can get 0% interest for the next 4 semesters, but 7% interest per semester, for the fifth semester, how much is that promise worth?
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If you estimate that you can get 0% interest for the next 4 semesters, but 7% interest per semester, for the fifth semester, how much is that promise worth?
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