Present Value Interest Factors Number of Periods 1 2 3 4 5 5% 9524 .9070 8638 8227 7835 Interest Rates 15% 8696 7561 6575 10% 9091 8264 7513 6830 6209 5718 4972 20% 8333 .6944 5787 4823 4019 You are given the table above to calculate the present value of the future cash flows of an investment. What do the values in th table represent?
Present Value Interest Factors Number of Periods 1 2 3 4 5 5% 9524 .9070 8638 8227 7835 Interest Rates 15% 8696 7561 6575 10% 9091 8264 7513 6830 6209 5718 4972 20% 8333 .6944 5787 4823 4019 You are given the table above to calculate the present value of the future cash flows of an investment. What do the values in th table represent?
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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
Transcribed Image Text:Present Value Interest Factors
Number of Periods
1
2
3
4
5
5%
9524
.9070
8638
8227
7835
Multiple Choice
Interest Rates
15%
8696
7561
6575
5718
4972
The calculation of 1/r
(wherer interest rate).
10%
9091
8264
7513
6830
6209
You are given the table above to calculate the present value of the future cash flows of an investment. What do the values in the
table represent?
20%
8333
6944
5787
4823
4019
The calculation of (1+r)
(wherer interest rate and t-number of perlods).
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