Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investment will pay you $ 8 6 , 0 0 0 in three years. Assume the appropriate discount rate is 7 . 5 percent

An investment will pay you $86,000 in three years. Assume the appropriate discount rate is 7.5 percent compounded daily. What is the present value?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16. Use 365 days in a year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The World Is Your Oyster The Guide To Finding Great Investments Around The Globe

Authors: Jeff D. Opdyke

1st Edition

0307381048, 978-0307381040

More Books

Students also viewed these Finance questions

Question

Self-confidence

Answered: 1 week ago

Question

What were your most important educational experiences?

Answered: 1 week ago

Question

Which personal relationships influenced you the most?

Answered: 1 week ago