A bank lends some money to a business. The business will pay the bank a single payment of $180,000 in ten years time. How much greater is the present value (PV) of this payment if the interest rate is 8% rather than 7%? A. $9,754 B. $6,502 C. $11,379 D. $8,128
A bank lends some money to a business. The business will pay the bank a single payment of $180,000 in ten years time. How much greater is the present value (PV) of this payment if the interest rate is 8% rather than 7%? A. $9,754 B. $6,502 C. $11,379 D. $8,128
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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Question
A bank lends some money to a business. The business will pay the bank a single payment of
$180,000
in ten years time. How much greater is the present value (PV) of this payment if the interest rate is
8%
rather than
7%?
$9,754
$6,502
$11,379
$8,128
Please use financial calculater variable entries.
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