If the single amount of $4500 is to be received in 3 years and discounted at 8%, its present value is
$3873. |
$3572. |
$3883. |
$3653. |
If $41500 is put in a savings account paying interest of 7% compounded annually, what amount will be in the account at the end of 9 years?
$76296 |
$34378 |
$68265 |
$67645 |
If the single amount of $4500 is to be received in 3 years and discounted at 8%, its present value is
$4500 x PVIF ( 8%,3) = $4500 x 0.7938 = $3572
If $41500 is put in a savings account paying interest of 7% compounded annually, what amount will be in the account at the end of 9 years?
Amount = Principal ( 1 + rate / no. of times compounded) ^ (no. of times compounded x period)
Amount = $41500 ( 1 + 0.07 / 1 ) ^ (1 x 9) = 41500 x 1.83845 = $76296
If the single amount of $4500 is to be received in 3 years and discounted at...
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