Assuming an interest rate of 20% compounded semi-annually, calculate the present value of a $91,900 cash...

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Assuming an interest rate of 20% compounded semi-annually, calculate the present value of a $91,900 cash...

Assuming an interest rate of 20% compounded semi-annually, calculate
the present value of a $91,900 cash flow that will occur eight years
from now

business accounting

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Answer 1

Answer #1

20% compounded semi-annually means 10% per period interest

PV factor @10% for 16th period = 0.2176

PV = $91900 x 0.2176 = $19997.44

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Answer 2

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