Answered: What is the present value of $1000…

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Finance

What is the present value of $1000 received in 8 years if the current opportunity rate of return is 7%

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter1: Understanding Personal Finance

Section1.4: Perform Time Value Of Money Calculations

Problem 3CC

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Q # 2 : What is the present value of $1000 received in 8 years if the current opportunity rate of return is 7% ?

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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