Question
Present Value of Amounts Due Assume that you are going to receive $710,000 in 10 years. The current market rate of interest is 4.5%, compounded
Present Value of Amounts Due
Assume that you are going to receive $710,000 in 10 years. The current market rate of interest is 4.5%, compounded annually.
a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Round to the nearest whole dollar. $fill in the blank 1
b. Why is the present value less than the $710,000 to be received in the future? The present value is less due to over the 10 years.
with explanation pls
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
978-1285868806, 1285868803, 978-1305691254, 978-1305465640, 1305465644, 978-1285866307
