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e cmemptis.nde Homework 1 1. What word describes compensation paid or received for renting money? 2. What is meant by the term minimum attractive rate of return (MARR? 3. At an interest rate of 8% per year, $50,000 one year from now is equivalent to what amount now? 4. A local developer invested S10 million in an apartment complex one year ago. Since then, they have 4. earned profits of $1,250,000. What annual rate of return does this represent? 5. What annual interest rate makes $2.00 today economically equivalent to S2.36 one year from now?

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