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Hansi is promised to receive $96 in 8 years. Hansi, being profligate, prefers to spend this...

Hansi is promised to receive $96 in 8 years. Hansi, being profligate, prefers to spend this promised amount of money today. What is the equivalent present value of the settlement if the interest rate is 2.00%?

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Answer #1

solo Present Value = future value 1 oso (It Int.) Equivalent - $ 96 Pesent value (+0.028 = $96 X 0.85349037 = $81.9351 or Pre

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