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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Transcribed Image Text: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
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