Compute the present value of a $3,000 deposit in year 2, and another $2,500 deposit at the end of year 4 if interest rates are 9 percent
Year | Cashflows | PVF at 9% | Present Value | ||
1 | 0 | 0.917431 | 0 | ||
2 | 3000 | 0.84168 | 2525.04 | ||
3 | 0 | 0.772183 | 0 | ||
4 | 2500 | 0.708425 | 1771.063 | ||
Present value of deposits | 4296.1 | ||||
Compute the present value of a $3,000 deposit in year 2, and another $2,500 deposit at...
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