Asked by
Deborah Cassidy-Cobb
on Dec 12, 2024
Verified
If the interest rate is 8 percent, the present value of $750 to be received two years from now is
A) $750.
B) $886.10.
C) $643.
D) $738.14.
Interest Rate
The charge for borrowing money or the payment for saving money, typically expressed as a percentage of the principal amount per annum.
Present Value
The immediate worth assigned to a future monetary sum or sequence of cash inflows, utilizing a specific interest rate for calculation.
- Attain an understanding of the net present value (NPV) and the steps for its calculation.
- Evaluate the present worth of future financial flows at various interest percentages.
Verified Answer
GS
Learning Objectives
- Attain an understanding of the net present value (NPV) and the steps for its calculation.
- Evaluate the present worth of future financial flows at various interest percentages.