please give well explained and computed answer with steps answer in text The present value factor at 8% for one period is 0.92593, for two periods is 0.85734, for three periods is 0.79383, for four periods is 0.73503, andfor five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now?$100/0.79383$100/(0.92593/3)O ($100/0.92593 + $100/0.85734 + $100/0.79383)$100 X 0.79383

In order to assess the possible growth of savings, investments, or other financial instruments over…

Answered: ar five periods is 0.68058. Given these…

ar five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three year

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 2MC

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

please give well explained and computed answer with steps answer in text

The present value factor at 8% for one period is 0.92593, for two periods is 0.85734, for three periods is 0.79383, for four periods is 0.73503, and
for five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now?
$100/0.79383
$100/(0.92593/3)
O ($100/0.92593 + $100/0.85734 + $100/0.79383)
$100 X 0.79383

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