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Present Value of the Future Payoff Assignment | Homework For You

Author:
May 25th, 2020

You invest $2,400 today and expect to sell your investment for $4,200 in 9 years.
a-1. Calculate the present value of the future payoff, if the interest rate is 5%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present Value:Homework For You

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a-2. Is this a good deal?

  • Yes
  • No

b-1. Calculate the present value, if the interest rate is 7%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Present Value:

b-2. Is this a good deal?

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