Question
(Present-value comparison) You are offered $2,000 today, $7,000 in 8 years, or $26,000 in 25 years. Assuming that you can earn 11 percent on your
(Present-value comparison) You are offered $2,000 today, $7,000 in 8 years, or $26,000 in 25 years. Assuming that you can earn 11 percent on your money, which offer should you choose? a. What is the present value of $26,000 in 25 years discounted at 11 percent interest rate? $___________(Round to the nearest cent)
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
8th Edition
1264098723, 978-1264098729
