A major corporation hires high school students on a part-time basis. It offers a reward of $5,000 to any of its high school seniors who graduate college in four years. What is the present value of that reward to a student who just finished her junior year of high school, assuming a nominal rate of interest of 8%?
What will be an ideal response?
5000/(1.08)5 = $3,402.92
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Indicate whether the statement is true or false
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