$5000 at time 0 is equivalent to:Select one:a. $7800 at the end of year 7, i=8% simple interest rateO b. $7346.64 at the end of year 5, i=8% compound interest rateC.$6800 at the end of year 6, i=6% simple interest rated. all the above

Answer: option c Explanation: Let us find the present value (value at time zero) of $6800 to see…

$5000 at time 0 is equivalent to: Select one: a. $7800 at the end of year 7, i=8% simple interest rate b. $7346.64 at the end of year 5, i=8% compound interest rate C. $6800 at the end of year 6, i-6% simple interest rate d. all the above

$5000 at time 0 is equivalent to: Select one: a. $7800 at the end of year 7, i=8% simple interest rate b. $7346.64 at the end of year 5, i=8% compound interest rate C. $6800 at the end of year 6, i-6% simple interest rate d. all the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

$5000 at time 0 is equivalent to:
Select one:
a. $7800 at the end of year 7, i=8% simple interest rate
O b. $7346.64 at the end of year 5, i=8% compound interest rate
C.
$6800 at the end of year 6, i=6% simple interest rate
d. all the above

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