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Q10BP-b

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Foundations Of Financial Management
Found in: Page 282
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

How much would you have to invest today to receive b. $20,000 in 12 years at 13 percent?

An investor has to invest $4,614.12 today in order to receive $20,000 in 12 years.

See the step by step solution

Step by Step Solution

Step 1: Identification of the required information

Future value (FV) = $20,000

Period (n) = 12 year

Interest Rate (i) = 13%

Step 2: Present value (PV)

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