Question: Problem 9-4 Present value (LO9-4] You will receive $8,800 three years from now. The discount rate is 10 percent. a. What is the value of

Problem 9-4 Present value (LO9-4] You will receive $8,800 three years

Problem 9-4 Present value (LO9-4] You will receive $8,800 three years from now. The discount rate is 10 percent. a. What is the value of your investment two years from now? Multiply $8,800 (1/1.10) or divide by 1.10 (one year's discount rate at 10 percent). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of investment b. What is the value of your investment one year from now? Multiply your answer to part a by (1/1.10). (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Value of investment c. What is the value of your investment today? Multiply your answer to part b by (1/1.10). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of investment d. Use the formula pv = FV (1/(1+i)") to find the present value of $8,600 received three years from now at 10 percent interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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