Question
Mahood has been offered $100,000 for the purchase of his cottage; however, the payment will be made as $60,000 immediately with the remaining $40,000
Mahood has been offered $100,000 for the purchase of his cottage; however, the payment will be made as $60,000 immediately with the remaining $40,000 to be paid at the end of 9 months from now. Assuming an annual nominal interest rate of 5.5%, what is the approximate present value of the $40,000 future payment?
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
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