Iris is discounting the amount of $10,000 that she wants in 3 years to find the one lump-sum amount that she needs to invest today in an account with 7.8% annual interest rate. Which formula below should she apply to calculate the deposit amount that is needed today? PV = 10,000 - (1+.078)³ PV = 10,000/(1+.078)³ PV = 10,000+ (1+.078)³ PV = 10,000+.078) PV = 10,000*(1+.078)³

Iris is discounting the amount of $10,000 that she wants in 3 years to find the one lump-sum amount that she needs to invest today in an account with 7.8% annual interest rate. Which formula below should she apply to calculate the deposit amount that is needed today? PV = 10,000 - (1+.078)³ PV = 10,000/(1+.078)³ PV = 10,000+ (1+.078)³ PV = 10,000+.078) PV = 10,000*(1+.078)³

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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