A single investment made today earning 8% annual interest worth 5200 at the end

Question

A single investment made today earning 8% annual interest worth 5200 at the end of 9 years is.... The present value of 5200 to be received at the end of 9 years of the discount rate is 8% is.....the most you would pay today for a promise to repay you 5200 at the end of 9 years of your opportunity cost is 8% is.... Compare contrast and discuss your findings in part a through c ... Choose 1 a) in parts a and c 5200 is the future value FV In part B 5200 is the present value PV . Therefore part a and c have the same answer while part b has a different answer. Choice b) in all three cases the answer is 2601.29 in part a it is the payment PMT. In part B it is the present value, PV. In part c it is the future value FV. Choice C) in all three cases you are solving for the present value PV which is 2601.29 Choice d) the annual interest rate is also called the discount rate or the opportunity cost.

Explanation / Answer

A single investment made today earning 8% annual interest worth 5200 at the end

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.