You are promised $450 one year from now. Assumingprevailing interest rates are at 4%, what is that promiseworth today?a. $430.00b. $432.69C. $96.15d. $450.00

In this case:Future Value = $450Interest Rate = 4% = 0.04Number of periods = 1 yearPlugging in the…

Answered: You are promised $450 one year from…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...

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General finance
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You are promised $450 one year from now. Assuming prevailing interest rates are at 4%, what is that promise worth today? a. $430.00 b. $432.69 C. $96.15 d. $450.00