In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $30,000 at the end of eight years if he can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1. Eleven percent 2. Twelve percent
In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $30,000 at the end of eight years if he can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1. Eleven percent 2. Twelve percent
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 33P
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In eight years, when he is discharged from the Air Force, Steve wants to buy a $30,000 power boat.
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
What lump-sum amount must Steve invest now to have the $30,000 at the end of eight years if he can invest money at: (Round your final answer to the nearest whole dollar amount.)
| Present Value | |
| 1. Eleven percent | |
| 2. Twelve percent |
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