A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded semi-annually, calculate the followings: a) The present value of this debt. b)The value of this debt at the end of first year. c)The value of this debt at the end of four years.

A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded semi-annually, calculate the followings: a) The present value of this debt. b)The value of this debt at the end of first year. c)The value of this debt at the end of four years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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Question

A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded semi-annually, calculate the followings:

a) The present value of this debt.

b)The value of this debt at the end of first year.

c)The value of this debt at the end of four years.

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