An investment will pay you $91,000 in five years. assume the appropriate discount rate is 6.25 percent compounded daily. what is the present value?

Question

03-10-2017
Business

contestada

An investment will pay you $91,000 in five years. assume the appropriate discount rate is 6.25 percent compounded daily. what is the present value?

Respuesta :

Otras preguntas

33. The population of Canada, y (in millions), can be approximated by the relation y= 0.146x + 31, where x represents the number of years since 2000. a. Approxi

An airplane flies a distance of 800km from A to B. If its average speed is 600km/h, how long does it take to cover that distance?

evaluate (5^0-4^-1)×3/4

capital punishment is better than a reformation process

A company prices its tornado insurance using the following assumptions: • In any calendar year, there can be at most one tornado. • In any calendar year, the p

The recursive formula for a geometric sequence is: a = 4 an=an-1×3 What is the 3rd term of this sequence?

what democratic principle did modern american government inherit from ancient anthens? a. citizen participation in lawmaking b. abolition of slavery c. equal vo

Can someone check my answers please

Which of the following is NOT an advantage of Egypt's geography? A. Natural desert barrier B. Easily defensible mountains and hills C. Rivers and waterways to t

Аноним Аноним · Answer 1 · 2017-10-11T23:31:09+02:00

Аноним Аноним

11-10-2017

Given:
Value = $91,000, value after 5 years
t = 5 years
n = 365, daily compounding
r = 6.25% = 0.0625, discount rate

Note that
n*t = 365*5 = 1825

Let P = principal, the current value
Then
P(1 + 0.0625/365)¹⁸²⁵ = 91000
1.3668P = 91000
P = $66,578.80

Answer: $66,758.80

Answer Link