Present meaning concept?
a) What single investment made today earn 12% annual interest, will be worth $6,000 at the running out of 6 years?
b) What is the present worth of $6,000 to be received at the cessation of 6 years if the discount rate is 12%?
c) What is the most you would settle up today for a promise to repay you $6,000 at the extremity of 6 years if your opportunity cost is 12%?
Answers:
All three of your question are duplicate entry. Actually, you don't provide ample information. To seize an answer requires making an assumption around the compounding rate. The answer, $3,040 assumes annual compounding. This answer is rounded to the nearest dollar. To catch the precise answer, you should do your own homework.
It is one point to ask roughly a concept. It is another entry to ask someone else to do your work for you.
You solitary swot up by trying.
Get a calculator.
a, b, c are adjectives asking alike thing
the answer is
$3039.79
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b) What is the present worth of $6,000 to be received at the cessation of 6 years if the discount rate is 12%?
c) What is the most you would settle up today for a promise to repay you $6,000 at the extremity of 6 years if your opportunity cost is 12%?
Answers:
All three of your question are duplicate entry. Actually, you don't provide ample information. To seize an answer requires making an assumption around the compounding rate. The answer, $3,040 assumes annual compounding. This answer is rounded to the nearest dollar. To catch the precise answer, you should do your own homework.
It is one point to ask roughly a concept. It is another entry to ask someone else to do your work for you.
You solitary swot up by trying.
Get a calculator.
a, b, c are adjectives asking alike thing
the answer is
$3039.79