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    Polytechnic State University Sanluis
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Category > Accounting Posted 01 May 2017 My Price 5.00

If the interest rate is 10 percent

1. If the interest rate is 10 percent and a dollar will be paid to you in three years, what is the present value of that dollar (to the nearest 10th of a cent)?

2. What is the present value of $10,000 that will be paid to you in four years if the interest rate is 8 percent? Work it out to the nearest cent.

 

Answers

Alpha Geek
(8)
Status NEW Posted 01 May 2017 05:05 PM My Price 5.00

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Attachments

file 1493658351-2103012_1_636291911132109500_present-value 1.xlsx preview (94 words )
21-----------030-----------12&-----------amp-----------;am-----------p;i-----------nfo-----------Id=-----------429-----------949-----------pre-----------sen-----------t v-----------alu-----------e1.----------- If----------- th-----------e i-----------nte-----------res-----------t r-----------ate----------- is----------- 10----------- pe-----------rce-----------nt -----------and----------- a -----------dol-----------lar----------- wi-----------ll -----------be -----------pai-----------d t-----------o y-----------ou -----------in -----------thr-----------ee -----------yea-----------rs,----------- wh-----------at -----------is -----------the----------- pr-----------ese-----------nt -----------val-----------ue -----------of -----------tha-----------t d-----------oll-----------ar -----------(to----------- th-----------e n-----------ear-----------est----------- 10-----------th -----------of -----------a c-----------ent-----------)?R-----------ate-----------cen-----------tsY-----------ear-----------sIn-----------ter-----------est----------- ra-----------teD-----------oll-----------ar -----------to -----------be -----------pai-----------d a-----------fte-----------r t-----------hre-----------e Y-----------ear-----------sPr-----------ese-----------nt -----------Val-----------ue -----------of -----------the----------- do-----------lla-----------r= -----------$1/-----------((1-----------+10-----------%) -----------to -----------pow-----------er -----------3)2-----------. W-----------hat----------- is----------- th-----------e p-----------res-----------ent----------- va-----------lue----------- of----------- $1-----------0,0-----------00 -----------tha-----------t w-----------ill----------- be----------- pa-----------id -----------to -----------you----------- in----------- fo-----------ur -----------yea-----------rs -----------if -----------the----------- in-----------ter-----------est----------- ra-----------te -----------is -----------8 p-----------erc-----------ent-----------?
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