Question
can you please explain how to get 7.10782 on this question? Investment X offers to pay you $5,500 per year for nine years, whereas Investment
can you please explain how to get 7.10782 on this question?
| Investment X offers to pay you $5,500 per year for nine years, whereas Investment Y offers to pay you $8,000 per year for five years. please help me understand how to get 7.10782 I am using the formula PV=FV1/1+r. thanks |
| a. | Calculate the present value for Investments X and Y if the discount rate is 5 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
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Fixed Income Markets And Their Derivatives
Authors: Suresh Sundaresan
3rd Edition
0123850517, 978-0123704719
