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Present value

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What is your personal discount rate or rate of preferences? I.e. how much would you pay for a promise of $1000 to be received one year from now? Would you discount it by 10%, 5%, etc?

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Present value

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Your personal discount rate depends on your ability to invest by yourself. Consider the two cases,

1. person A is works as a stock trader for Goldman Sachs and he typically achieves a 15% ...

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