Question

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%?

Answer 1

Answer: The answer is 33333.33

Explanation:

Answer 2

$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