What is the present value of an investment that promises to pay you $ 1, 000 in five years if you can earn 6 percent interest compounded annually ? PV - Lump Sum
What is the present value of an investment that promises to pay you $ 1, 000 in five years if you can earn 6 percent interest compounded annually ? PV - Lump Sum
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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What is the
Expert Solution
Present value formula
Here,
The present value is PV.
The future value is FV.
The maturity is n.
The interest rate is r.
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