of 3 years?8. Will Smith will receive $80,000 5 years from now, from a trust fundestablished by his father. Assuming the appropriate interest rate fordiscounting is 12% (compounded semiannually), what is the presentvalue of this amount today?

The objective of the question is to calculate the present value of a future amount of money, given a…

Answered: of 3 years? 8. Will Smith will receive…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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of 3 years? 8. Will Smith will receive $80,000 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the present value of this amount today?