Question

Question 3 1 pts The amount of money that CamCam can spend now for improving productivity in lieu of spending $10,000 eight years from now at an interest rate of 10% per year is closest to less than 15,000 between 15000-16,500 between 16,500-18,000 higher than 18,000 None of the answers is correct

Answer 1

Answer

The amount now is equal to the present value of the $10000.

PV=FV*(1+i)^(-n)

PV=present value =amount now=?

FV=future value=spending $10000

i=interest rate =10%

n=years

PV=10000*(1.1^-8)

=4665.0738

The amount should be equal to or less than $4665.0738 so the amount above it will make a loss so the less than $15000 is not correct option as it gives an open end to any between 0 to 15000.

Option 5

None of the theses