Can somebody please help me with this question. I do not understand what he is doing, why he is discounting 700 to one year in both the cases, when the price is 700 and also when the price is 620.

Thanks in advance

Quote Originally Posted by Sam Broverman View Post
The Exam MLC question can be found at
http://www.sambroverman.com/mlcqw/apr23-07mlc.pdf
and the Exam MFE question can be found at
http://www.sambroverman.com/mfeqw/apr23-07mfe.pdf .