Homework Answers
Amount = Principal*(1 + r)t
$10000 = Principal*(1 + 0.08)9
$10000 = Principal*(1.08)9
Principal = $10000/(1.08)9
Principal = $5002.48
Therefore, present value of a $10000 prize in 9 years is $5002.48
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hello. i need some help in this. Name: Calculation of Present Value of a Lump Sum...
hello. i need some help in this.
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Solve for the Present Value of a Lump Sum with the Following
Situation: Investor has been offered an investment opportunity that
is expected to provide $1,300 cash inflow at the end of five years.
Investor is able to make 5% compounded annually on other
investments. (This 5% discount rate can be thought of as an
opportunity cost of capitalthe return the investor is forgoing on
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hello. i need some help in this.
Name: Calculation of Present Value of a Lump Sum You have been offered a security investment such as a bond that will pay you Php 10,000 at the end of 6 years in exchange for a fixed payment today, the appropriate annual interest rate on the investment is 12% compounded annually, what is the present value of the investment? Calculation of Future Value of a Lump Sum You plan to invest Php 10,000...
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