Question
The present value of $6,000 you will receive 3 years from today is $5,333.98, assuming a 4% interest (discount) rate. What would the difference in
The present value of $6,000 you will receive 3 years from today is $5,333.98, assuming a 4% interest (discount) rate. What would the difference in the present value be if the interest (discount) rate was assumed to be 3%?
Step by Step Solution
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Step: 1
The present value PV of a future amount is calculated using the formu...
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
