Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. OA. $2742.53 OB. $2632.45 OC. $1967.25 OD. $2572.50 O E. None of the above is a possible number.
Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. OA. $2742.53 OB. $2632.45 OC. $1967.25 OD. $2572.50 O E. None of the above is a possible number.
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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Transcribed Image Text:Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of
that future sum. Assuming a positive interest rate (required rate of return), which of the following is a
possible number for the present value of the $2500? Even without knowing the interest rate, it is
possible to answer this question.
O A. $2742.53
B. $2632.45
O C. $1967.25
OD. $2572.50
O E. None of the above is a possible number.
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