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ar five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three year

ar five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three year

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The present value factor at 8% for one period is 0.92593, for two periods is 0.85734, for three periods is 0.79383, for four periods is 0.73503, and for five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now? $100/0.79383 $100/(0.92593/3) O ($100/0.92593 + $100/0.85734 + $100/0.79383) $100 X 0.79383
Transcribed Image Text:The present value factor at 8% for one period is 0.92593, for two periods is 0.85734, for three periods is 0.79383, for four periods is 0.73503, and for five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now? $100/0.79383 $100/(0.92593/3) O ($100/0.92593 + $100/0.85734 + $100/0.79383) $100 X 0.79383
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