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What is the most you would pay today

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Reference no: EM133170588

Question - Present value concept - Answer each of the following questions.

a. What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years?

b. What is the present value of $6,000 to be received at the end of 6 years if the discount rate is 12%?

c. What is the most you would pay today for a promise to repay you $6,000 at the end of 6 years if your opportunity cost is 12%?

d. Compare, contrast, and discuss your findings in parts a through c.

Reference no: EM133170588

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