natenut2006 natenut2006

06-02-2018
Business

contestada

What is the present value of $500 due in 2 years at a discount rate of 3%.

Respuesta :

mathmate mathmate

06-02-2018

P=present value
F=future value=500
n=number of years=2
i=annual interest rate=3%

We have
F=P(1+i)^n
=>
P=F/(1+i)^n
=500/(1.03^2)
= 471.30 to the nearest cent

Answer Link

Otras preguntas

What is the importance of extinction events to geologists?

The temperature in a water bath holding a flask in which a reaction is occurring changes from 22°C to 23°C over a period of 2 minutes. What best describes the

which statement is true 3/4 =4/6 or the greatest sign or the less sign which one belongs there please i really needed

find the total pressure of a gas that initially occupied 27 L at 32 degrees Celsius and 2.5 atm, if the final conditions are 12 degrees celsius and 88.0 L

Is this document/cartoon a primary or secondary source? Why? Explain. Thanks in advance ;)

Keaton bought a new Jeep for $32,000. The value of the car will depreciate at a rate of 8.5% per year. Growth or decay? What will the car be worth in 5 years? W

How do you evaluate the expression below at x=6

Zen rolled a fair six-sided die 12 times. The table below shows the number of times each number was rolled: Number Cube Experiment Number on the Cube Number of

Write two hundred three and forty-two thousandths in standard form and expanded form.

In what way are midas and Xochiquetzal similar