Problem

Suppose that r, the annual interest rate, is 0.20. and that all money in the bank cams 20%...

Suppose that r, the annual interest rate, is 0.20. and that all money in the bank cams 20% interest each year (that is, after being in the bank for one year, $1 will increase to $1.20). If we place $100 in the bank fix one year, what is the NPV of this transaction?

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Solutions For Problems in Chapter 3.6