What is the most you would pay today for a promise to repay

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Reference no: EM131985118

What single investment made today, earning 8% annual interest, will be worth $4, 300 at the end of 5 years?

What is the present value of $4, 300 to be received at the end of 5 years if the discount rate is 8%?

What is the most you would pay today for a promise to repay you $4, 300 at the end of 5 years if your opportunity cost is 8%?

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

Reference no: EM131985118

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