Homework Answers
Answer
The amount now is equal to the present value of the $10000.
PV=FV*(1+i)^(-n)
PV=present value =amount now=?
FV=future value=spending $10000
i=interest rate =10%
n=years
PV=10000*(1.1^-8)
=4665.0738
The amount should be equal to or less than $4665.0738 so the amount above it will make a loss so the less than $15000 is not correct option as it gives an open end to any between 0 to 15000.
Option 5
None of the theses
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