Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer D please. You will receive $8,600 three years from now. The discount rate is 12 percent. a. What is the value of your investment
Answer D please.
You will receive $8,600 three years from now. The discount rate is 12 percent. a. What is the value of your investment two years from now? Multiply $8,6001.121 or divide by 1.12 (one year's discount rate at 12 percent). Note: Do not round intrmediate calculations. Round your answer to 2 decimal places. Answer is complete and correct. b. What is the value of your investment one year from now? Multiply your answer to part a by 1.121 Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. What is the value of your investment today? Multiply your answer to part b by 1.121. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is cimplete and correct. Value of investment d. Use the formula PV=FV((1+i)n1) to find the present value of $8,400 received three years from now at 12 percent interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started