A person wishes to get 400$ at the end of third year and 600$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: O a. 650$ O b. 625$ O c. 620%

A person wishes to get 400$ at the end of third year and 600$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: O a. 650$ O b. 625$ O c. 620%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 16PROB

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Question

A person wishes to get 400$ at the
end of third year and 600$ at the end
of fifth year, if rate of interest is 12%
how much he has to deposit in the
bank today?
Select one:
O a. 650$
b. 625$
O c. 620%

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