Question
Present Value of Amounts Due Assume that you are going to receive $350,000 in 10 years. The current market rate of interest is 7%. a.
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Present Value of Amounts Due
Assume that you are going to receive $350,000 in 10 years. The current market rate of interest is 7%.
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. $
b. Why is the present value less than the $350,000 to be received in the future? The present value is less due to over the 10 years. A. Deflation B. Inflation C. the compounding of Interest
Present Value of Amounts Due
Assume that you are going to receive $350,000 in 10 years. The current market rate of interest is 7%.
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. $
b. Why is the present value less than the $350,000 to be received in the future? The present value is less due to over the 10 years. A. Deflation B. Inflation C. the compounding of Interest
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College Mathematics For Business Economics, Life Sciences, And Social Sciences
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
14th Edition
0134674146, 978-0134674148
