Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the following table, what is the present value of $8,500 to be received in four years, if the market rate is 10% compounded annually?

Using the following table, what is the present value of $8,500 to be received in four years, if the market rate is 10% compounded annually? Round to the nearest whole number.

Periods

5%

6%

7%

10%

1

0.95238

0.94340

0.93458

0.90909

2

0.90703

0.89000

0.87344

0.82645

3

0.86384

0.83962

0.81630

0.75132

4

0.82270

0.79209

0.76290

0.68301

5

0.78353

0.74726

0.71299

0.62092

6

0.74622

0.70496

0.66634

0.56447

7

0.71068

0.66506

0.62275

0.51316

8

0.67684

0.62741

0.58201

0.46651

9

0.64461

0.59190

0.54393

0.42410

10

0.61391

0.55840

0.50835

0.38554

Price in dollar amount rounded to nearest whole number.

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

More Books

Students also viewed these Accounting questions

Question

1. What are the pros and cons of diversity for an organisation?

Answered: 1 week ago

Question

1. Explain the concept of diversity and equality in the workplace.

Answered: 1 week ago