The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar) (us...
The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar) (use the appropriate table in the outline or in the text and note that there is not interest payment involved, so this question could be stated as "How much would you loan someone today for a promise to be paid $30,000 in two years (with no interest payments) assuming you want to earn 12% interest on the loan")
Homework Answers
Here,
the amount of loan = amount to be received after two years x PVF
= $30000 x 0.797
= $23910
where,
PVF(12%, 2) = 0.797
Therefore $23,910 should be loaned someone today to get $30,000 in 2 years by earning 12% interest on the loan.
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The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar) (us...
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