1. what single investment made today earning 10% annual interest, will be worth $5000 at the end of six years?
2. What is the present value of $5000 to be received at the end of 6 years if the discount rate is 10%?
3. What is the most you would pay today for a promise to repay you $5000 at the end of 6 years if your opportunity cost 10%?
Compare, contrast, and discuss your findings in parts 1 through 4.
Show formula and work
Hi Student, please find... View the full answer