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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
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
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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? O PV = 10,000 - (1+.078)³ PV = 10,000/(1+.078)³ PV = 10,000+ (1+.078)³ Jm PV = 10,000+.078) PV = 10,000*(1+.078)³
Transcribed Image Text: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? O PV = 10,000 - (1+.078)³ PV = 10,000/(1+.078)³ PV = 10,000+ (1+.078)³ Jm PV = 10,000+.078) PV = 10,000*(1+.078)³
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