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I believe my calculations are correct (not 100% sure), but I really don't understand the spreadsheet. Can you help me? I feel like I am
I believe my calculations are correct (not 100% sure), but I really don't understand the spreadsheet. Can you help me? I feel like I am on the wrong track.
You will receive $6,800 three years from now. The discount rate is 10 percent. a. What is the value of your investment two years from now? Multiply $6,800(1/1.10) or divide by 1.10 (one year's discount rate at 10 percent). b. What is the value of your investment one year from now? Multiply your answer to part a by (1/1.10). c. What is the value of your investment today? Multiply your answer to part b by (1/1.10). d. Use the formula PV=FV1/(1+i)n to find the present value of $6,600 received three years from now at 10 percent interestStep by Step Solution
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