questions. What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years?

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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Single cash
flow
End of
period (years)
Case
Discount rate
$ 7,000
28,000
10,000
150,000
12%
4
8
20
14
12
11
6
45,000
20
8.
P4-12 Present value concept Answer each of the following questions.
a. What single investment made today, earning 12% annual interest, will be
worth $6,000 at the end of 6 years?
b. What is the present value of $6,000 to be received at the end of 6 years i the
discount rate is 12%?
ABCAE
Transcribed Image Text:Single cash flow End of period (years) Case Discount rate $ 7,000 28,000 10,000 150,000 12% 4 8 20 14 12 11 6 45,000 20 8. P4-12 Present value concept Answer each of the following questions. a. What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years? b. What is the present value of $6,000 to be received at the end of 6 years i the discount rate is 12%? ABCAE
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