Question
The present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Required: Using a present
The present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Required: Using a present value table (Table 6-4 and Table 6-5), calculate the present value of $100,000 for each of the following items (parts af) using these facts: (Round your PV factors to 4 decimal places.)
A). Interest is compounded semiannually.
B). Interest is compounded quarterly.
C). A discount rate of 12% is used.
D). A discount rate of 20% is used
E). The cash will be received in three years.
F). The cash will be received in seven years.
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