5. As shown in Table 18.2, $1,000 invested at 10 percent compound interest will grow into $1,331...

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5. As shown in Table 18.2, $1,000 invested at 10 percent compound interest will grow into $1,331 after three years.

What is the present value of $2,662 in three years if it is discounted back to the present at a 10 percent compound interest rate? (Hint: $2,662 is twice as much as $1,331.)

LO18.4

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Economics

ISBN: 9781259723223

21st Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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