Chapter 4: Question: (page 281)
What is the present value of
b. $16,600 in 5 years at 9 percent?
Answer
The present value is $10,788.86
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You invest $3,000 for three years at 12 percent.
c. What is the value of your investment after three years?
Rapid corporate growth in sales and profits can cause financing problems. Elaborate on this statement
Question: What is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period? The interest rate is 12 percent.
How is the future value related to the present value of a single sum?
Question: You will receive \(6,800 three years from now. The discount rate is 10 percent. d. Use the formula PV 5 FV 3 _____ 1 (1 1 i) n to find the present value of \)6,600 received three years from now at 10 percent interest.
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