What is the value of your investment one year from now

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Reference no: EM13807450

You will receive $7,500 three years from now. The discount rate is 12 percent.

a. What is the value of your investment one year from now? (one year’s discount rate at 12 percent). (Round "PV Factor" to 3 decimal places and final answer to 2 decimal places. Omit the "$" sign in your response.)

b. What is the value of your investment today? (one year’s discount rate at 12 percent). (Round "PV Factor" to 3 decimal places and final answer to 2 decimal places. Omit the "$" sign in your response.)

c. Calculate the present value by going to Appendix B (present value of $1) for n = 3 and i = 12%. Multiply this tabular value by $7,500 and compare your answer to the answer in part c. There may be a slight difference due to rounding. (Round "PV Factor" to 3 decimal places and final answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM13807450

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