For each of the following, compute the present value: (Do not round intermedia calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years 12 3 28 30 Interest Rate 6 % 12% 13 % 10 % Future Value $ 14,451 41,557 876,073 540,164
For each of the following, compute the present value: (Do not round intermedia calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years 12 3 28 30 Interest Rate 6 % 12% 13 % 10 % Future Value $ 14,451 41,557 876,073 540,164
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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11
For each of the following, compute the present value: (Do not round intermediate
calculations and round your answers to 2 decimal places, e.g., 32.16.)
Present Value
Years
12
3
28
30
Interest Rate
6 %
12 %
13 %
10 %
Future Value
$
14,451
41,557
876,073
540,164
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Concept
Present value is the present worth of the future cash stream. It is calculated by discounting the future cash flow at an appropriate discount rate. The concept is of time value of money. It is based on the concept that the present worth of money is always more than the future worth of the same amount of money.
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