What is the present value of a $1,500 payment made in nine years when the discount rate is 8 percent?
Answer to relevant QuestionsCompute the present value of an $850 payment made in 10 years when the discount rate is 12 percent.What would be more valuable, receiving $500 today or receiving $625 in three years if interest rates are 7 percent? Why?What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years? What annual rate of return is implied on a $2,500 loan taken next year when $3,500 must be repaid in year 4? How can you use the present value of an annuity concept to determine the price of a house you can afford?
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