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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D Question 3
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?
Transcribed Image Text:D Question 3 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?
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