Question
You have just sold your car for $50,000, but under the sales agreement, it wont receive the $50,000 until 5 years from today. What is
You have just sold your car for $50,000, but under the sales agreement, it wont receive the $50,000 until 5 years from today. What is the present value of $50,000 to be received 5 years from today if the discount rate is 7 percent annually?
| a. | $35,445.94 | |
| b. | $35,270.25 | |
| c. | $50,000.00 | |
| d. | $35,649.31 | |
| e. | $32,500.00 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Stock Market Investing For Beginners
Authors: George Graham
1st Edition
1914346432, 978-1914346439
