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Foundations Of Financial Management
Found in: Page 283
Foundations Of Financial Management

Foundations Of Financial Management

Book edition 16th
Author(s) Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Pages 768 pages
ISBN 9781259277160

Short Answer

If you owe $35,000 payable at the end of eight years, what amount should your creditor accept in payment immediately if she could earn 13 percent on her money?

The creditor should accept $13,165.60 now.

See the step by step solution

Step by Step Solution

Identification of the required information

Future value (FV) = $35,000

Periods (n) = 8

Interest Rate (i) = 13%

Immediate payment to be accepted by the creditor (PV)

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