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You will receive $9,600 three years from now. The discount rate is 8 percent. a. What is the value of your investment two years from
You will receive $9,600 three years from now. The discount rate is 8 percent. a. What is the value of your investment two years from now? Multiply $9,600 (1/1.08) or divide by 1.08 (one year's discount rate at 8 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 (1/1.08). (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 (1/1.08). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of investment d. Use the formula Pv - FV * (1/(1+i)", to find the present value of $9,400 received three years from now at 8 percent interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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