Determine the present value of $7000 in 2 years time if the discount rate is 8% compounded

Fantastic news! We've Found the answer you've been seeking!

Question:

Determine the present value of $7000 in 2 years’ time if the discount rate is 8% compounded

(a) quarterly (b) continuously

Posted Date: Oct 05, 2021 05:23 AM

See More Questions

Determine the present value of $100,000 to be received at the end of each of four years, using an interest rate of 6%, compounded annually, as follows: (a) By successive computations, using the...
Determine the present value of $150,000 to be received at the end of each of four years, using an interest rate of 7% compounded annually, as follows: a. By successive computations, using the present...
Determine the present value of $75,000 to be received at the end of each of four years, using an interest rate of 5%, compounded annually, as follows: a. By successive computations, using the present...
If A and B are mutually exclusive events and P(A) = 0.2 and P(B) = 0.7, then P(A and B) is?
Morgan Dance Inc. provides ballet, tap, and jazz dancing instruction to promising young dancers. Morgan began operations in January 2012 and is preparing its monthly financial statements. The...
A conductor suspended by two flexible wires as shown in figure has a mass per unit length of 0.0400 kg/m. What current must exist in the conductor for the tension in the supporting wires to be zero...
During the COVID19 pandemic, local governments in the United States ordered some businesses, including restaurants, gyms, and movie theaters, to close, and as a result, those businesses laid off...
(a) Make suggestions about how the $355 might be integrated into the Johnsons budget by making reductions in certain expense categories. (b) If they cannot make room in their budget for a $355...
Question two (20mks) Building Societies Act is a well structured and balanced Organism that spells out different functions. Identify and describe the organization and management of building society...
Whispering issued an 9%, 10-year $1,800,000 bond to build a monorail mass transit system. The city received $1,587,988 cash from the bond issuance on January 1, 2025. The bond yield is 11%. Interest...
Let X(1),..., X() denote the order statistics of an iid sample, X,.....X from a continuous population with edf Fx(x) and pdf fx(r). Then the pdf of X) is given by n! (j 1)!(n j)!Sx(x) [Fx (x)]~ [1...
Name a past conflict and how this conflict affected the business.
Show that viscosity will dissipate kinetic energy in a compressible fluid.
What is the definition for leadership in your organization?
1.We consider a free particle of Lagrangian L = m x2/2. Calculate the action along the physical trajectory in terms of the positions and times of departure (x1, t1) and arrival (x2, t2). 2.Consider...
Propagation of waves. We now assume, for simplicity, that = 0. We also assume that N 1, so that sin(k/N)~ (k/N) for k < < N. We assume that for t = 0 we have yN-1 = 1, y = 1, yn = 0 if n (1 or...
1. Consider an economy that is characterized by the following parameters and quantities (in monetary units): C = c0+c1YD, I = 400, G = 300, T = 200, c0 = 200, c1 = 0.5. (a) Starting from the...
You purchase a bond with a coupon rate of 6.7 percent, a par value $1,000, and a clean price of $905. Assume a par value of $1,000. If the next semiannual coupon payment is due in two months, what is...
Assume a city of $1,000,000$ people, $60 \%$ of whom are willing to pay $\$ 1$ maximum (each) to clean up pollution. The rest of the population is wealthier and is willing to pay $\$ 100$...
For each of the following social choice methods, which of Arrow's axioms are violated, and why: a. the Pareto criterion b. plurality-rule voting (of several choices, the one with the most votes wins)...
In Figure 3.2, using the Pareto criterion, which of the labeled points are socially preferred to $W$ ? Figure 3.2 Brewster's utility B w' R Anna's utility S

Determine the present value of $7000 in 2 years time if the discount rate is 8% compounded

Question:

Expert Answer:

Given that Proincipal amount 7000 Time 2 years Dis count sate To find Presen... View the full answer

Students also viewed these mathematics questions