Question
You expect to receive $500 in five years from an investment. What is this investment worth today if the effective annual interest rate is 12%?
You expect to receive $500 in five years from an investment.
- What is this investment worth today if the effective annual interest rate is 12%? Is this right?
- A. Worth today- 500= pv (1+12%) 5
- Pv =500(1+12%)5
500/1.76234 = 283.71. Worth today = $238.71
2. What is it worth at a 12% APR compounded monthly? Help please!
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Financial Management For Nurse Managers And Executives
Authors: Cheryl Jones, Steven A. Finkler, Christine T. Kovner, Jason Mose
5th Edition
0323415164, 9780323415163
