Google HW-C5 part 1 Compute The Present Value of Saved Help Compute the present value of...

Question

Question

business finance

Answer 1

Answer #1

formula:
Present Value= Future Value/(1+interest rate)^no.of years.

a.
PV = 110/(1.10)^9
PV =$46.65

b.
PV = 110/(1.10)^18
PV = $19.78

c.
PV = 110/(1.05)^9
PV = $70.91

d.
PV = 110/(1.05)^18
PV = $45.70

Answer 2

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