Question
You will receive $9,000 three years from now. The discount rate is 13 percent. a. What is the value of your investment two years from
You will receive $9,000 three years from now. The discount rate is 13 percent. |
a. | What is the value of your investment two years from now? Multiply $9,000 .885(one years discount rate at 13 percent).(Round your answer to 2 decimal places.) |
Value of investment | $ |
b. | What is the value of your investment one year from now? Multiply your rounded answer to partaby .885 (one years discount rate at 13 percent).(Round your answer to 2 decimal places.) |
Value of investment | $ |
c. | What is the value of your investment today? Multiply your rounded answer to partbby .885 (one years discount rate at 13 percent).(Round your answer to 2 decimal places.) |
Value of investment | $ |
d. | Confirm that your answer to partcis correct by going to the link provided below (present value of $1) forn= 3 andi= 13%. Multiply this tabular value by $9,000 and compare your answer to partc. There may be a slight difference due to rounding. UseAppendix B.(Round your answer to 2 decimal places.) |
Present value | $ |
e. | Now compute the present value of $9,000 for 3 years at 13 percent using the formula and financial calculator methods.(Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Present value | $ |
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