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Question 8 The answer 15,000 corresponds to which of the following calculation? Assuming a discount rate of 20 per cent: (a)the present value of 3000

Question 8

The answer 15,000 corresponds to which of the following calculation? Assuming a discount rate of 20 per cent:

(a)the present value of 3000 to be received in five years' time

(b)the present value of 3000 received each year forever

(c)the present value of 3000 to be received each year for the next five years

3000 compounded for five years

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