4.2 Calculating Present Values Suppose you have just celebrated your 19th birthday. A rich uncle set up a trust fund for you that will pay you $100,000 when you turn 25 If the relevant discount rate is 11 percent, how much is this fund worth today? (See
4.2 Calculating Present Values Suppose you have just celebrated your 19th birthday. A rich uncle set up a trust fund for you that will pay you $100,000 when you turn 25 If the relevant discount rate is 11 percent, how much is this fund worth today? (See
Chapter1: Understanding Personal Finance
Section: Chapter Questions
Problem 9DTM
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The worth of the fund today can be calculated with the help of present value function
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