contestada

Your uncle offers you a choice of $106,000 in 10 years or $43,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 9 percent, what is the present value of the $106,000?

Respuesta :

beritop1089

Answer:

$44,775.55

Explanation:

You can compute this question using a financial calculator with the following inputs;

Future value amount; FV = $106,000

Duration of the investment in years; N = 10

Recurring payment; PMT = 0

Annual Interest rate; I/Y = 9%  or 0.09

then  compute the present value of the $106,000; CPT PV = $44,775.55

Therefore, it would be better to choose the option of $106,000 in 10 years since its present value is$44,775.55 which is greater than today's offer of $43,000

Otras preguntas