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Linda_us, Finance, Accounts & Homework Tutor

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You will receive $5,000 three years from now. The discount

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You will receive $5,000 three years from now. The discount rate is 8 percent. a. What is the value of your investment two years from now? Multiply $5,000 _ .926 (one year’s discount rate at 8 percent).

b. What is the value of your investment one year from now? Multiply your answer to part a by .926 (one year’s discount rate at 8 percent).

c. What is the value of your investment today? Multiply your answer to part b by .926 (one year’s discount rate at 8 percent).

d. Confirm that your answer to part c is correct by going to Appendix B (present value of $1) for n _ 3 and i _ 8 percent. Multiply this tabular value by $5,000 and compare your answer to part c. There may be a slight difference due to rounding

If you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12 percent? c. In 25 years at 14 percent? d. In 25 years at 14 percent (compounded semiannually)?

Your uncle offers you a choice of $30,000 in 50 years or $95 today. If money is discounted at 12 percent, which should you choose?

Your response was fast and thank you but did you do this for someone else. The reason I ask I am concerned with turning in the assignment and getting caught for plagarism. Please advise ,thanks!

Its true I did this for someone else but I can redo if you want but the best thing would be you can use this as a guide (Answer Key) and you can reformat and reword it.

Also as per the policy we at justanswer should help you in completing/understanding your assignment and are not allowed to do the complete homework on your behalf.