Question
You will receive $9,800 three years from now. The discount rate is 10 percent. a. What is the value of your investment two years from
You will receive $9,800 three years from now. The discount rate is 10 percent.
a. What is the value of your investment two years from now? Multiply $9,800 .909 (one years discount rate at 10 percent). (Round your answer to 2 decimal places.)
b. What is the value of your investment one year from now? Multiply your rounded answer to part a by .909 (one years discount rate at 10 percent). (Round your answer to 2 decimal places.)
c. What is the value of your investment today? Multiply your rounded answer to part b by .909 (one years discount rate at 10 percent). (Round your answer to 2 decimal places.)
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ISE Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders Professor, Marcia Millon Cornett, Otgo Erhemjamts
10th International Edition
1260571475, 9781260571479
