John needs $150,000 in five years. If John can invest at 6%, how much will he invest now in order to have $150,000 in five years? Present value of $1: 7% 8% 9% 5% 6% 3 0.864 0.840 0.816 0.794 0.772 4 0.823 0.792 0.763 0.735 0.708 56 0.784 0.747 0.713 0.681 0.650 0.746 0.705 0.666 0.630 0.596

John needs $150,000 in five years. If John can invest at 6%, how much will he invest now in order to have $150,000 in five years? Present value of $1: 7% 8% 9% 5% 6% 3 0.864 0.840 0.816 0.794 0.772 4 0.823 0.792 0.763 0.735 0.708 56 0.784 0.747 0.713 0.681 0.650 0.746 0.705 0.666 0.630 0.596

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1QTD

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Question

please explain your answer....

John needs $150,000 in five years. If John can invest at 6%, how much will he invest now in order to have $150,000 in five years?
Present value of $1:
7% 8% 9%
5%
6%
3
0.864
0.840
0.816
0.794
0.772
4
0.823
0.792
0.763 0.735 0.708
56
0.784
0.747 0.713
0.681 0.650
0.746 0.705 0.666
0.630 0.596

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