Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the present value of an investment that will be worth $7000 at the end of five years? Assume an APR of 8% compounded

What is the present value of an investment that will be worth $7000 at the end of five years? Assume an APR of 8% compounded monthly. (Round your answers to the nearest cent.) $ Explain what your answer means.

This means that to have an investment worth $ in the future, you must invest $ now, assuming the APR is 8% and constant over the next five years.

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

The Municipal Budget Crunch A Handbook For Professionals

Authors: Roger L. Kemp

1st Edition

0786463740, 978-0786463749

More Books

Students also viewed these Finance questions

Question

What is a free trade zone? What functions might be performed in it?

Answered: 1 week ago