Question
3. Using either Excel, Financial Calculator of formula, estimate the Present Value of $225,000 paid in 3 years if the interest rate is 3% (Show
3. Using either Excel, Financial Calculator of formula, estimate the Present Value of $225,000 paid in 3 years if the interest rate is 3% (Show your work)
a. What happens if the interest rate goes UP to 10%? (Re-estimate at 10% and compare your results).
b. Why are your results different? In your own words, define the concept of Present Value and why it does change when interest rate change.
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Chronic Regulatory Focus And Financial Decision Making Asset And Portfolio Allocation
Authors: Navin Kumar
1st Edition
9812876936, 978-9812876935
