Question
Using the equations and example under 1.2 Interest Rates and Present Value, recreate the NVP table (below) using the dollar value of $10,000, interest rates
Using the equations and example under 1.2 Interest Rates and Present Value, recreate the NVP table (below) using the dollar value of $10,000, interest rates of 5, 8, 12 and 15 and the following year sequence 5, 10, 15 and 20.
. 
Explain your findings.
Interest rate (%) 5 10 15 20 20%. Present Value of $15,000 Time until payment 10 years 15 years 20 years $9,208.70 $7,215.26 $5,653.34 5,783.15 3,590.88 2,229.65 3,707.77 1,843.42 916.50 973.58 391.26 5 years $11,752.89 9,313.82 7,457.65 6,028.16 2,422.58
Step by Step Solution
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Step: 1
Given NPV P1rN Where P10000 r interest rate NTime until payment Sample c...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
