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5 votes
4) What is the present value of $4000 received at the

end of the year for the next 3 years, with a discount
rate of 8%?

User Jeff
by
8.1k points

2 Answers

3 votes

Answer: The answer is 33333.33

Explanation:

4) What is the present value of $4000 received at the end of the year for the next-example-1
User Jhoan
by
9.0k points
1 vote

Answer:

$11040

Explanation:

first of all the question says that $4000 were earned in a year and asks for what the new vale would be after the next 3 years with a discount rate of 8%.

If 1 year=$4000,then 3 years=$12000

100%-8%=92% (this happens because there is still a remaining amount that still has a cost to it),so 12000*92%=$11040

User Magige Daniel
by
7.6k points

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