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Ch. 5: Trade-offs and the Economy. Trade-offs Between Present and Future. What is the smallest amount you would accept as repayment in one year for a $1000 loan to me today?. FV = PV (1+ R ). FV = 1000(1+ R ).
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What is the smallest amount you would accept as repayment in one year for a $1000 loan to me today?
FV = PV(1+R) FV = 1000(1+R) Plug in the amount you would accept in one year as your future value (FV) and solve for R to find your discount rate.