Investment A and B both have a future value of $5,000. and are exactly the same except that investment A matures in 5 years and investment B matures in 10 years. The present value of investment A will be _____ the present value of investment B.
Less than, the same as, greater than, or can't tell - please advise correct answer and show why/work - thanks so much.© BrainMass Inc. brainmass.com March 4, 2021, 6:12 pm ad1c9bdddf
to calculate present values we need interest rates; assume that our interest rate is 10% for both A and B
For investment A
N= 5 I/YR= ...
This solution determines the present value of the investment.