Compute the present value of a $100 investment to be made 6 months, 5 years, and 10

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Compute the present value of a $100 investment to be made 6 months, 5 years, and 10 years from now at 4 percent interest. Explain why the present value is lower the further into the future the investment is to be made.

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Money Banking And Financial Markets

ISBN: 9781260226782

6th Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Mar 21, 2024 02:02 AM

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Compute the present value of a $100 investment to be made 6 months, 5 years, and 10

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To compute the present value of a future investment we need to discount the future cash flows by applying an appropriate interest rate In this case th...View the full answer

Money Banking And Financial Markets

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