Calculate the present value of: ...

profileguru2009
 (Not rated)
 (Not rated)
Chat

  

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

    blurred-text