Cornel offers to pay you $5,000 in 3 years and wants to borrow some money from you now in return. You estimate the opportunity cost of capital to be 8%. How much are you willing to loan Cornel against this payment? Choose the closest. a. $3,969 b. $4,568 c. $5,223 d. $6,299

Cornel offers to pay you $5,000 in 3 years and wants to borrow some money from you now in return. You estimate the opportunity cost of capital to be 8%. How much are you willing to loan Cornel against this payment? Choose the closest. a. $3,969 b. $4,568 c. $5,223 d. $6,299

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 10E

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Question

Cornel offers to pay you $5,000 in 3 years and wants to borrow some money from you now in return.
You estimate the opportunity cost of capital to be 8%. How much are you willing to loan Cornel against
this payment? Choose the closest.

a. $3,969

b. $4,568

c. $5,223

d. $6,299

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