Calculate the present value of: ...
(Not rated)
(Not rated)
Calculate the present value of:
a. A car down payment of $5,000 that will be required in five years, assuming an interest rate of 10%.
b. A lottery prize of $10 million to be paid at the rate of $500,000 per year for 20 years, assuming an interest rate of 7%.
What happens to the above calculations when the interest rate is 0%?
7 years ago
pv = fv / (1 + i)^n ...
NOT RATED
Purchase the answer to view it
