What is the present value of a $1,550 payment made in seven years when the discount rate is 9 percent?
(Do not round intermediate calculations and round your final answer to 2 decimal places.)
Answer: Present value=Future value/(1+discount rate)^time
=1550/(1+9%)^7
=847.90
the above is the answer
the above we assumed only one payment at the end of 7 years.
You might also like to view...
Discount on Bonds Payable is a balance sheet item for Covington Products Company. How would it most likely be classified on the balance sheet?
a. Current liability b. Long-term liability c. Current asset d. Contra-liability
Describe the value and limitations of emotional intelligence.
What will be an ideal response?
Which popular needs theory is defined as a pyramid of five levels of individual needs with physiological needs at the bottom and self-actualization needs at the top?
a. Maslow’s hierarchy of needs b. Alderfer’s ERG Theory c. Herzberg’s two-factor theory d. McClelland’s acquired needs theory
An error about certain material facts made by one party to a contract is called a(n) ____________________
Fill in the blank(s) with correct word