Register
What is the present value of a $200 payment made in three years when the discount rate is 8 percent?
521,384 views
22 votes
22 votes
What is the present value of a $200 payment made in three years when the discount rate is 8 percent?

User Ttulka
by
2.8k points

2 Answers

19 votes
19 votes
X/200 8/100 8x x =8x 200x100 =20,000 divide 8 =2,500
User Jigs
by
3.2k points
4 votes
4 votes

Answer:

$184

Step-by-step explanation:

8% of 200 is 16. 200 - 16 = 184. Therefore, the answer is $184.

User Slach
by
3.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
Link Copied!