How much that does it worth today, if the interest rate is 5%, and at the end of 7 years $10 is received?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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100%
How much that does it worth today, if the interest rate is 5%, and at the end of 7 years $10
is received?
100
a)
(1+0.05)
100
b)
(0.05)'
100
c)
(1+5)'
d) 100
Transcribed Image Text:How much that does it worth today, if the interest rate is 5%, and at the end of 7 years $10 is received? 100 a) (1+0.05) 100 b) (0.05)' 100 c) (1+5)' d) 100
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