Present value of amounts due Assume that you are going to receive $ 50,000 in 10 years. The current market rate of interest is 4%. A.Using the present value of $ 1 table in Exhibit s, determine the present value of this amount compounded annually. B.why is the present value less than the $50,000 to be received in the future?
Present value of amounts due Assume that you are going to receive $ 50,000 in 10 years. The current market rate of interest is 4%. A.Using the present value of $ 1 table in Exhibit s, determine the present value of this amount compounded annually. B.why is the present value less than the $50,000 to be received in the future?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 5PROB
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Present value of amounts due
Assume that you are going to receive $ 50,000 in 10 years. The current market rate of interest is 4%.
A.Using the present value of $ 1 table in Exhibit s, determine the present value of this amount compounded annually.
B.why is the present value less than the $50,000 to be received in the future?
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