is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $3000 is be paid out a year from today with the interest rate equal to 1% is $ (Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $9000 is to be paid then with a corresponding 5% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)
is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $3000 is be paid out a year from today with the interest rate equal to 1% is $ (Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $9000 is to be paid then with a corresponding 5% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place)
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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Finance
Transcribed Image Text:is based on the notion that a dollar paid in the future is less valuable than a dollar paid
today.
The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 1% is
$ (Round your response to the neareast two decimal place)
If a loan is paid after two years, and the amount $9000 is to be paid then with a corresponding 5% interest rate, the
present value of the loan is $. (Round your response to the neareast two decimal place)
Transcribed Image Text:st
K
Cash Flow
Present Discounted Value
Interest Rate
point(s) possible
is based on the notion that a dollar paid in the future is less valuable
3000 is to be paid out a year from today with the interest rat
areast two decimal place)
e amount $9000 is to be paid then with a corresponding 5%
nd your response to the neareast two decimal place)
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