If interest rate is 10%, the present value of $100,000 to be received one year from now if $90,910.Which two statements are correct?a) The present value of receiving $25,000 at the end of each year for the next four years is lessthan $90,910b) The present value of receiving $25,000 at the end of each year for the next four years is morethan $90,910c) The present value of receiving $50,000 at the end of each year for the next two years is less than$90,910d) The present value of receiving $50,000 at the end of each year for the next three years is lessthan $90,910e) The present value of receiving $50,000 at the end of each year for the next two years is morethan $90,910
If interest rate is 10%, the present value of $100,000 to be received one year from now if $90,910.Which two statements are correct?a) The present value of receiving $25,000 at the end of each year for the next four years is lessthan $90,910b) The present value of receiving $25,000 at the end of each year for the next four years is morethan $90,910c) The present value of receiving $50,000 at the end of each year for the next two years is less than$90,910d) The present value of receiving $50,000 at the end of each year for the next three years is lessthan $90,910e) The present value of receiving $50,000 at the end of each year for the next two years is morethan $90,910
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
Related questions
Question
If interest rate is 10%, the present value of $100,000 to be received one year from now if $90,910.
Which two statements are correct?
a) The present value of receiving $25,000 at the end of each year for the next four years is less
than $90,910
b) The present value of receiving $25,000 at the end of each year for the next four years is more
than $90,910
c) The present value of receiving $50,000 at the end of each year for the next two years is less than
$90,910
d) The present value of receiving $50,000 at the end of each year for the next three years is less
than $90,910
e) The present value of receiving $50,000 at the end of each year for the next two years is more
than $90,910
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