You will receive $4,500 three years from now. The discount rate is 13 percent. a. What is
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Question:
You will receive $4,500 three years from now. The discount rate is 13 percent.
a. What is the value of your investment two years from now? Multiply $4,500 × .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)
b. What is the value of your investment one year from now? Multiply your rounded answer to part a by .885 (one year’s discount rate at 13 percent). (Round your answer to 2 decimal places.)
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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