Your brother has asked you for a loan and has promised to pay you $7,100 at the end of three years. If you normally invest to earn 8.50 percent per year, how much will you be willing to lend to your brother if you view this purely as a financial transaction (i. e., you don’t give your brother a special deal)?
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Your brother has asked you for a loan and has promised to pay you $7,100 at the end of three years....
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