You are thinking of building a new machine that will save you $2,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 1% per year forever. What is the present value of the savings if the interest rate is 8% per year? The present value of the savings is $ (Round to the nearest dollar.)

You are thinking of building a new machine that will save you $2,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 1% per year forever. What is the present value of the savings if the interest rate is 8% per year? The present value of the savings is $ (Round to the nearest dollar.)

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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if you have $100 in a savings account and the interest rate is 10% per year and you never withdraw or deposit money, how much will you have in the account after: one year, two years
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