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You will receive $10,500 three years from now. The discount rate is 12 percent. a. What is the value of your investment two years from
You will receive $10,500 three years from now. The discount rate is 12 percent. a. What is the value of your investment two years from now? Multiply $10,500 (1/1.12) or divide by 1.12 (one year's discount rate at 12 percent). (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Value of investment b. What is the value of your Investment one year from now? Multiply your answer to part a by (1/1.12). (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Value of investment c. What is the value of your Investment today? Multiply your answer to part b by (1/1.12). (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Value of investment d. Use the formula PV = FV (1/(1+i)n) to find the present value of $10,300 received three years from now at 12 percent interest. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Present value
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