Compute the present value of $1,000 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year.
Answer to relevant QuestionsCompute the present value of $5,000 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year.What is the value in year 3 of a $700 cash flow made in year 6 if interest rates are 10 percent?How long will it take $2,000 to reach $5,000 when it grows at 10 percent per year?Ten years ago, Hailey invested $3,000 and locked in an 8 percent annual interest rate for 30 years (end 20 years from now). Aidan can make a 20-year investment today and lock in a 10 percent interest rate. How much money ...How can you use the concepts illustrated in computing the number of payments in an annuity to figure how to pay off a credit card balance? How does the magnitude of the payment impact the number of months?
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