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A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 3 years, and she insists on your earning the same interest rate on your loan to her as you would have earned keeping your money in your savings account that earns 2%. How much can you lend her today?
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A trustworthy friend asks to borrow money from you today. She promises to pay you exactly $3750 in 3...
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