FINANCE 200

posted by .

You receive $5000 three years from now. The discount rate is 8 percent.
What is the value of your investment two years from now? (Multiply 5000 by .926 (one year discount rate at 8%)

Will it be worth $9,260?

  • FINANCE 200 -

    no the answer would be 4,630

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. finance

    Can someone please help me with the following question. I am not sure even where to start. A 5-year annuity of 10 $9,000 seminannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount …
  2. FIN200- FV, PV and Annuity Due CP

    I just want to know if anyone can help me in determining if I am on track with this assignment and if anyone can point out where I am wrong and how I need to fix it. I have already completed this assignment on my own and need someone …
  3. Finance

    1. $5000.00 compunded annually at 6% for 5 years= $6,691.1279?
  4. checking answers please help

    1. $5000.00 compunded annually at 6% for 5 years= $6,691.1279 or $6,312.38?
  5. Correted Bob can you re-check?

    So i pretty much had them right the first time with the first set of answers i just needed to round up?
  6. please check my answers

    1. $5000.00 compounded annually at 6% for 5 years= Answer $6,691.13?
  7. finance

    A 5-year annuity of ten $4500 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 12% compounded monthly, what is the value of this annuity five years from now?
  8. Finance

    Investment X offers to pay you $5,500 per year for nine years, whereas Investment Y offers to pay you $8,000 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent?
  9. finance

    . Suppose you just inherited an gold mine. This gold mine is believed to have three years worth of gold deposit. Here is how much income this gold mine is projected to bring you each year for the next three years: Year 1: $49,000,000 …
  10. finance

    Determine the present value now of an investment of $3,000 made one one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent.

More Similar Questions