What is that promise worth today on this accounting question? You are promised $450 one year from now.Assuming prevailing interest rates are at 4%, whatis that promise worth today?a. $430.00b. $432.69C. $96.15d. $450.00

To determine what $450 promised one year from now is worth today with a prevailing interest rate of…

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 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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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