A bank lends some money to a business. The business will pay the bank a single payment of $180,000 in ten years time. How much greater is the present value​ (PV) of this payment if the interest rate is 8​% rather than 7​%?   A. $9,754   B. $6,502   C. $11,379   D. $8,128

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A bank lends some money to a business. The business will pay the bank a single payment of
$180,000
in ten years time. How much greater is the present value​ (PV) of this payment if the interest rate is
8​%
rather than
7​%?
 
A.
$9,754
 
B.
$6,502
 
C.
$11,379
 
D.
$8,128
 
 

Please use financial calculater variable entries.

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