Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Question

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Answer 1

Question

Chapter 7A, Problem 1YT

To determine

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Expert Solution & Answer

Explanation of Solution

Compute the present value of $5,000 in five years:

Present value = Future value × Present value factorPresent value = $5,000 × 0.62092= $3,104.60

Therefore, the present value of $5,000 in the five years is $3,104.60.

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Answer 2

Question

Chapter 7A, Problem 1YT

To determine

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Expert Solution & Answer

Explanation of Solution

Compute the present value of $5,000 in five years:

Present value = Future value × Present value factorPresent value = $5,000 × 0.62092= $3,104.60

Therefore, the present value of $5,000 in the five years is $3,104.60.

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Answer 3

Question

Chapter 7A, Problem 1YT

To determine

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Expert Solution & Answer

Explanation of Solution

Compute the present value of $5,000 in five years:

Present value = Future value × Present value factorPresent value = $5,000 × 0.62092= $3,104.60

Therefore, the present value of $5,000 in the five years is $3,104.60.

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Answer 4

Question

Chapter 7A, Problem 1YT

To determine

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Expert Solution & Answer

Explanation of Solution

Compute the present value of $5,000 in five years:

Present value = Future value × Present value factorPresent value = $5,000 × 0.62092= $3,104.60

Therefore, the present value of $5,000 in the five years is $3,104.60.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7A, Problem 1YT

To determine

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Expert Solution & Answer

Explanation of Solution

Compute the present value of $5,000 in five years:

Present value = Future value × Present value factorPresent value = $5,000 × 0.62092= $3,104.60

Therefore, the present value of $5,000 in the five years is $3,104.60.

Answer 6

Chapter 7A, Problem 1YT

To determine

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Expert Solution & Answer

Explanation of Solution

Compute the present value of $5,000 in five years:

Present value = Future value × Present value factorPresent value = $5,000 × 0.62092= $3,104.60

Therefore, the present value of $5,000 in the five years is $3,104.60.

Answer 7

Chapter 7A, Problem 1YT

To determine

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Answer 8

Expert Solution & Answer

Explanation of Solution

Compute the present value of $5,000 in five years:

Present value = Future value × Present value factorPresent value = $5,000 × 0.62092= $3,104.60

Therefore, the present value of $5,000 in the five years is $3,104.60.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 7A - Prob. 1YT Ch. 7A - Suppose Action Company issues a 1,000, 10-year,...Ch. 7A - Suppose HPS Company issues a 1,000 face value,...Ch. 7A - Present value. (LO 8). Suppose you want to have...Ch. 7A - Present value. (LO 8). Able Company has offered to...Ch. 7A - Calculate payments using time value of money...Ch. 7A - Calculate payments using time value of money...Ch. 7A - Prob. 5PA Ch. 7A - Prob. 6PB

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Compute the amount that should be deposit today to have $5,000 in five years at an annual interest rate of 10%.

Explanation of Solution

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Chapter 7A Solutions