Abdul Rahman borrowed an amount of nominalisduepayment value ($2000) on 1/2/2020. Theon 9/1, 2020, calculate the commercial present valueif the interest rate equals 12% per annum?Cucumber 111861 $1858 $1848 $1841 $Abdul Rahman borrowed an amount of nominal value($2000) on 1/2/2020 that is worth repaying. Calculate1/9/2020, and the interest rate12% annually, isthe correct discount?10031200131

Bartleby's Guideline “Since you have asked multiple question, we will solve the first question for…

Abdul Rahman borrowed an amount of nominal due is payment value ($2000) on 1/2/2020. The on 9/1, 2020, calculate the commercial present value if the interest rate equals 12% per annum? O Cucumber 1 O 1861 $ O1858 $ O 1848 $ O 1841 $

Abdul Rahman borrowed an amount of nominal due is payment value ($2000) on 1/2/2020. The on 9/1, 2020, calculate the commercial present value if the interest rate equals 12% per annum? O Cucumber 1 O 1861 $ O1858 $ O 1848 $ O 1841 $

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

Section: Chapter Questions

Problem 1PS

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Abdul Rahman borrowed an amount of nominal
is
due
payment value ($2000) on 1/2/2020. The
on 9/1, 2020, calculate the commercial present value
if the interest rate equals 12% per annum?
Cucumber 11
1861 $
1858 $
1848 $
1841 $
Abdul Rahman borrowed an amount of nominal value
($2000) on 1/2/2020 that is worth repaying. Calculate
1/9/2020, and the interest rate
12% annually, is
the correct discount?
100
31
200
131

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