How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of return is 7.5%? $285.02 $153.89 $223.82 $242.00 $693.65

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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How much would $9,000 t8 be received at the end of 50 years be worth today if the required
rate of return is 7.5%?
$285.02
$153.89
O $223.82
$242.00
E $693.65
Transcribed Image Text:How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of return is 7.5%? $285.02 $153.89 O $223.82 $242.00 E $693.65
Expert Solution
Step 1

Using excel,

FV is 9,000

Rate = 7.5%

Time (nper) = 50 years

PMT = 0

PV = ?

 

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