Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in 10 years time. a) What is the discount factor assuming quarterly compounding at 7% interest rate? b) What is the present value? c) What happens to the present value if the payment was to occur in five years? d) What happens to the present value if the interest rate was 8% instead?

Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in 10 years time. a) What is the discount factor assuming quarterly compounding at 7% interest rate? b) What is the present value? c) What happens to the present value if the payment was to occur in five years? d) What happens to the present value if the interest rate was 8% instead?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 7CE

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Financial Mathematics

Please answer all parts of the question

Suppose you will receive $50,000 in 10 years time.
a) What is the discount factor assuming quarterly compounding at 7% interest rate?
b) What is the present value?
c) What happens to the present value if the payment was to occur in five years?
d) What happens to the present value if the interest rate was 8% instead?

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