Homework Answers
rate positively ..
| Ans 3) | PV = | 200000/(1+12%)^15 | |||||||
| 36,539.25 | |||||||||
| Ans = | 36,539.25 | ||||||||
| Ans 4) | we have to compute the present value of 3000 and need to compare with $2000 invested today | ||||||||
| PV = | 3000/(1+10%)^4 | ||||||||
| 2,049.04 | |||||||||
| Since the present value of amount received after 4 year is higher than 2000 therefore its good investment. | |||||||||
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