A contractor offers to purchase your old tractor for ETB10,000 but cannot pay you the money for 12 months. If you feel i=1% per month is a fair interest rate, what is the present worth to you today of the $10,000 if it is paid 12 months from now

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A: P=A(1+R)nwhere P is present value A is future value R is interest rate n is time period

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