Compute the present value of $4,800 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year. (Do not round intermediate calculations and round your answer to 2 decimal places.) Future value 4,800 Number of years Interest rate first year Interest rate second year 2 8.00% 7.00% Complete the following analysis. Do not hard code values in your calculations. Value two years from today Value one year from today Present value

Compute the present value of $4,800 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year. (Do not round intermediate calculations and round your answer to 2 decimal places.) Future value 4,800 Number of years Interest rate first year Interest rate second year 2 8.00% 7.00% Complete the following analysis. Do not hard code values in your calculations. Value two years from today Value one year from today Present value

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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What is the present value of a $1,300 payment made in five years when the discount rate is 10 percent? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Present value
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What is the present value of $3,000 to be received 2 years from now, if the discount rate is: (a) 6%, (b) 10%, and (c) 13% ? 1. Use the appropriate table (Appendix C: Table 1) to answer the above questions. 2. Use the formula shown at the bottom of Appendix C. Table 1, to answer the above questions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions, (Round "PV Factor" to 5 decimal places and "PV values" to 2 decimal places.) Future after-tax cash Bow Cash flow received at the end of year (a) (b) [(0) Answer is complete but not entirely correct. Rate 6% 10% 13% PV Factor 0.89000 $ 0.82645 $ 0.78315 S PV < Required 1 7,553 18,406 2,669.99 2,479.34 2,349 44 **
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