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Memphic Memphic
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6 years ago
Suppose you have $500 today and the risk-free interest rate (rf) is 5%.  The equivalent value in one year is closest to:
A) $475
B) $476
C) $500
D) $525
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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wrote...
6 years ago
D
Explanation:  D) $500 × (1.05) = $525
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