What is the present value of $73,000 in 11 years if the interest rate is 8% compounded semiannually? NOTE: the value obtained by using the present value formula will be more accurate than that obtained using a factor from Table 11-2.

Formula of Prsent value interest factor = 1(1+rm)m×t where; r = annual interest rate m = number of…

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What is the present value of $73,000 in 11 years if the interest rate is 8% compounded semiannually?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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Question

What is the present value of $73,000 in 11 years if the interest rate is 8% compounded
semiannually? NOTE: the value obtained by using the present value formula will be more
accurate than that obtained using a factor from Table 11-2.

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