the present value of eight semi-annual lease payments of $1200 at 8% nominal interest is nearest to a) $7200 b) $8080 c) $8100 d) $8400

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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the present value of eight semi-annual lease payments of $1200 at 8% nominal interest is nearest to

a) $7200

b) $8080

c) $8100

d) $8400

Expert Solution
Step 1

The future value is calculated by taking the present value with the interest rate and it is directly related to the present value.

 

 

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