You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now. What rate of interest was used in the present value computation? Assume interest is compounded annually. O A. 3.97 percent O B.4.15 percent OC. 4.29 percent O D.4.53 percent

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
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QUESTION 3
You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now. What rate of interest was used in the present value
computation? Assume interest is compounded annually.
O A. 3.97 percent O C D. 4.53 percent
B. 4.15 percent OC.4.29 percent
Transcribed Image Text:QUESTION 3 You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now. What rate of interest was used in the present value computation? Assume interest is compounded annually. O A. 3.97 percent O C D. 4.53 percent B. 4.15 percent OC.4.29 percent
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