4chapter6 - YOUR NAME YOUR PERM NUMBER ECON 136A Quiz/...

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YOUR NAME YOUR PERM NUMBER ECON 136A Quiz/ Homework #4 Chapter 6 Using the present value tables in your textbook, or a financial calculator which you plan to use in the future exams, please compute the following: NOTE: Use any piece of paper. You only need to write the question number followed by your answer. Be sure to show your computations. 1) Seller company sells a box of widgets to Buyer, Inc. Buyer, Inc. will pay $100,000 for the widgets in 3 years. Seller determines that the appropriate discount rate for computing the present value of the sale is 6% and that annual compounding is appropriate. What is the present value of the future payment
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This note was uploaded on 08/06/2008 for the course ECON 136A taught by Professor Anderson during the Winter '08 term at UCSB.

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