Question
compute the present value of a $850 payment made in 10 years when the discount rate is 8 percent. Recalculate the present value using an
compute the present value of a $850 payment made in 10 years when the discount rate is 8 percent. Recalculate the present value using an 7 percent discount rate and again using a 9 percent discount rate. Describe the relationship between changes in the amount of time and the changes in annual rate of return.
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
