You are to receive $ 400,000 exactly 5 years from now. You do not want to wait for the money and contact JT Goneworth so that they can "Show you the money" today. JT Goneworth requires 6 % interest (annual) on this type of loan. How much with JT Goneworth pay you TODAY for this claim on the money to be received 5 years from now?

You are to receive $ 400,000 exactly 5 years from now. You do not want to wait for the money and contact JT Goneworth so that they can "Show you the money" today. JT Goneworth requires 6 % interest (annual) on this type of loan. How much with JT Goneworth pay you TODAY for this claim on the money to be received 5 years from now?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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