Question
A $1000 investment today will pay you $300 three months from now, $500 six months from now and $800 in one year.If the interest rate
A $1000 investment today will pay you $300 three months from now, $500 six months from now and $800 in one year.If the interest rate is 8% APR (compounded quarterly), what is the present value of these cash flows?
I do not know why the answer is $514.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
