Calculate the present value of future payoff

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You invest $2,100 today and expect to sell your investment for $4,200 in 9 years.

a-1. Calculate the present value of the future payoff, if the interest rate is 5%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

a-2. Is this a good deal?

Yes

No

b-1. Calculate the present value, if the interest rate is 9%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2. Is this a good deal?

Yes

No

Reference no: EM131982651

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