eBook Present Value of Amounts Due Print Item Tommy John is going to receive $540,000 in...

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eBook Present Value of Amounts Due Print Item Tommy John is going to receive $540,000 in three years. The current market rate of interest is 11%. a. Using the present value of $1 table in Exhibit 8, determine the present value of this amount compounded annually. Round to the nearest whole dollar. b. Why is the present value less than the $540,000 to be received in the future? The present value is less due to the compounding of interest over the 3 years. Check My Work Review the time value of money concept. Recall that the time value of money concept recognizes that cash received today is worth more than the same amount of cash to be received in the future. eBook Present Value of Amounts Due Print Item Tommy John is going to receive $540,000 in three years. The current market rate of interest is 11%. a. Using the present value of $1 table in Exhibit 8, determine the present value of this amount compounded annually. Round to the nearest whole dollar. b. Why is the present value less than the $540,000 to be received in the future? The present value is less due to the compounding of interest over the 3 years. Check My Work Review the time value of money concept. Recall that the time value of money concept recognizes that cash received today is worth more than the same amount of cash to be received in the future.