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You will receive $8,500 three years from now. The discount rate is 10 percent. a. What is the value of your investment two years from
You will receive $8,500 three years from now. The discount rate is 10 percent. a. What is the value of your investment two years from now? Multiply $8,500(1/1.10) or divide by 1.10 (one year's discount rate at 10 percent). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the value of your investment one year from now? Multiply your answer to part a by (1/1.10). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. What is the value of your investment today? Multiply your answer to part b by (1/1.10). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. Use the formula PV=FV(1/(1+n) to find the present value of $8,300 received three years from now at 10 percent interest. Note: Do not round intermediate calculations. Round your answer to 2 decimal places
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