Answered: Suppose you were promised $400 three…

Suppose you were promised $400 three years from now and $600 at the end of five years. How much is that worth now at 12% interest?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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Suppose you were promised $400 three years
from now and $600 at the end of five years.
How much is that worth now at 12% interest?

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