This topic contains a solution. Click here to go to the answer

Author Question: Assume the current interest rate is 20%. The present value of $900 in one year would be (Read 52 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566

Question 1

The formula for present discounted value is ________, where 
R dollars is to be paid 
t years in the future and the agreed upon interest rate is 
r.


R(1 + 
r)
t
◦ (1 + 
r)
t/
R
R/(1 + 
r)
t
◦ (1 + 
r)/
R
t

Question 2

Assume the current interest rate is 20%. The present value of $900 in one year would be


◦ $180.
◦ $450.
◦ $750.
◦ $1,080.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by pragya sharda on Apr 19, 2019

fraziera112

  • Sr. Member
  • ****
  • Posts: 356
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly




pragya sharda

  • Member
  • Posts: 566
Reply 2 on: Apr 19, 2019
Excellent


aruss1303

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

For a complete list of videos, visit our video library