Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The present value factor at 8% for one period is 0.92593 , for two periods is 0.85734 , for three periods is 0.79383 , for

image text in transcribed

The present value factor at 8% for one period is 0.92593 , for two periods is 0.85734 , for three periods is 0.79383 , for four periods is 0.73503 , and for five periods is 0.68058 . Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now? $100/0.79383 $100/(0.92593/3) ($100/0.92593+$100/0.85734+$100/0.79383) $1000.79383

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mcgraw Hills Homework Manager Access Code To Accompany Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

3rd Edition

0073264938, 978-0073264936

More Books

Students also viewed these Accounting questions