You will receive $6,000 three years from now. The discount rate is 8 percent.

a. What is the value of your investment two years from now? Multiply $6,000 × (1/1.08) or divide by 1.08 (one year’s discount rate at 8 percent). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is the value of your investment one year from now? Multiply your answer to part a by (1/1.08). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. What is the value of your investment today? Multiply your answer to part b by (1/1.08). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer rating: 100% (QA)

a Value of investment two years from now 555556 b Value of investment one years from now 514403 c Va... View the full answer