Homework: Ch 5 Pre HW (part 1 of 2)
core: 0 of 1 pt
2 of 4 (1 complete)
5-12 (similar to)
Present value concept Answer each of the following questions.
a. How much money would you have to invest today to accumulate $5,600 after 9 years if the rate of return on your inves
b. What is the present value of $5,600 that you will receive after 9 years if the discount rate is 9%?
c. What is the most you would spend today for an investment that will pay $5,600 in 9 years if your opportunity cost is
9%?
d. Compare, contrast, and discuss your findings in part a through c.
a. A single investment made today, earning 9% annual interest, worth $5,600 at the end of 9 years is
(Round to the