Time value. You can deposit $12,000 into an account paying 6% annual interest either today or exactly 10 years from today. How much better off will you be 40 years from now if you decide to make the initial deposit today rather than 10 years from today?
Time value. You can deposit $12,000 into an account paying 6% annual interest either today or exactly 10 years from today. How much better off will you be 40 years from now if you decide to make the initial deposit today rather than 10 years from today?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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