Question
Your aunt offers you a choice of $20,500 in 20 years or $765 today. Use Appendix B as an approximate answer, but calculate your final
Your aunt offers you a choice of $20,500 in 20 years or $765 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a-1. If money is discounted at 18 percent, what is the present value of the $20,500? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) ________
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
