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Present value of money

The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate of 12% per year is closest to?

a. 12,100
b. 13,300
c. 14,900
d. 16,200

Solution Preview

The present worth of $ 5000 in year 3= 3558.901239 ( ...

Solution Summary

This gives step by step explanation of calculating present value of money through a practical illustration.

$2.19