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What is the present value of $1,500 due in 14 years at a (a) 5 percent interest rate (b) 10 percent rate. Explain why the present value is lower when the interest rate is higher.

What is the present value of $1,500 due in 14 years at a 

(a) 5 percent interest rate 

(b) 10 percent rate. 

Explain why the present value is lower when the interest rate is higher.

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a PV 1 500 1 05 14 1 500 0 505068 757 60 Using a financial calculator enter N 14 I Y …View the full answer


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CFIN

CFIN

ISBN: 978-1305666870

5th edition

Authors: Scott Besley, Eugene Brigham

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Question Details
Chapter # 4
Section: Problems
Problem: 5
Posted Date: January 31, 2020 09:48:30
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