Answered: the present value of eight semi-annual…

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

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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Solved in 2 steps

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