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If the interest rate is zero, a promise to pay $3,000 in two years is equal to...

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Finance

Ifthe interest rate is zero, a promise to pay $3,000 in two years isequal to receiving the money today. Using one or more of the coreprinciples of money and banking, explain why this statement is trueor false.

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The statement is true Explanation with respect tocore principles of money banking Time has value Time has values Time affects the value of financial transaction A dollar today    See Answer
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Transcribed Image Text

Ifthe interest rate is zero, a promise to pay $3,000 in two years isequal to receiving the money today. Using one or more of the coreprinciples of money and banking, explain why this statement is trueor false.

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