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to an agreement for the purchase of land. The agreement specifies that you will t tely. You have agreed to pay $56,000 today and another $56,000 in three years. d today, assuming a discount rate of (a) 4%, (b) 6%, or (c) 8%. xcel, or a financial calculator. Do not round your intermediate values. Round you FV of $1, PV of $1, FVA of $1, and PVA of $1) nterest Total Cost of and

to an agreement for the purchase of land. The agreement specifies that you will t tely. You have agreed to pay $56,000 today and another $56,000 in three years. d today, assuming a discount rate of (a) 4%, (b) 6%, or (c) 8%. xcel, or a financial calculator. Do not round your intermediate values. Round you FV of $1, PV of $1, FVA of $1, and PVA of $1) nterest Total Cost of and

Essentials Of Investments
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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into an agreement for the purchase of land. The agreement specifies that you will take owner iately. You have agreed to pay $56,000 today and another $56,000 in three years. Calculate nd today, assuming a discount rate of (a) 4%, (b) 6%, or (c) 8%. Excel, or a financial calculator. Do not round your intermediate values. Round your answer: (FV of $1, PV of $1, FVA of $1, and PVA of $1) Interest Rate 4% 6% 8% Compounding Annually Annually Annually Period Due 3 years 3 years 3 years Total Cost of Land Today $ 105,784.00 103,040.00 100,464.00
Transcribed Image Text:into an agreement for the purchase of land. The agreement specifies that you will take owner iately. You have agreed to pay $56,000 today and another $56,000 in three years. Calculate nd today, assuming a discount rate of (a) 4%, (b) 6%, or (c) 8%. Excel, or a financial calculator. Do not round your intermediate values. Round your answer: (FV of $1, PV of $1, FVA of $1, and PVA of $1) Interest Rate 4% 6% 8% Compounding Annually Annually Annually Period Due 3 years 3 years 3 years Total Cost of Land Today $ 105,784.00 103,040.00 100,464.00
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