EBK FUNDAMENTALS OF CORPORATE FINANCE
4th Edition
ISBN: 8220103631754
Author: Harford
Publisher: PEARSON
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Chapter 3, Problem 30P
Summary Introduction
Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value.
Present value is the current worth of a future value of money deposited at a rate of interest.
To determine:
- Calculate the amount in the account after 7 years at an interest rate of 8% per year.
- Calculate the amount in the account after 47 years at an interest rate of 8% per year.
- Calculate the amount deposited by grandfather before years in the account.
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Chapter 3 Solutions
EBK FUNDAMENTALS OF CORPORATE FINANCE
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