If you expect to receive a gift of $50,000 six years from now, the present worth

ID: 1121873 • Letter: I

Question

If you expect to receive a gift of $50,000 six years from now, the present worth of the gift at a real interest rate of 4% per year and an inflation rate of 3% per year is closest to: A. $37,200 6. B. $33,100 C. $29,800 D. $27,600 Formula used: the discounted payback period for a business that has an income of $5000 per year and expenses of $1500 per year if your initial i A. Less than 6 years vestment was $23,800 and your MARR is 10% per year? B. 8 years C. 12 years D. 17 years Interest formula used:

Explanation / Answer

Ans- B $33100

If=0.04+0.03+(0.04)(0.03)

=7.12%

P=50000[1/(1+0.07126) 6]

=$ 33094

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If you expect to receive a gift of $50,000 six years from now, the present worth

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If you expect to receive a gift of $50,000 six years from now, the present worth

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