4. As shown in Table 18-2, $1000 invested at 10 percent compound interest will grow into $1331...

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4. As shown in Table 18-2, $1000 invested at 10 percent compound interest will grow into $1331 after three years. What is the present value of $2662 in three years if it is discounted back to the present at a 10 percent compound interest rate?

(Hint: $2662 is twice as much as $1331.) [LO18.4]

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Microeconomics

ISBN: 9781108420969

15th Canadian Edition

Authors: Campbell R. Mcconnell, Stanley L. Brue, Sean M. Flynn, Thomas P. Barbiero

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