Question
You are considering investing
in a security that will pay you $1,000 in 30 years.
If the appropriate discount rate is 10 percent, what is the present value of this investment?
in a security that will pay you $1,000 in 30 years.
If the appropriate discount rate is 10 percent, what is the present value of this investment?
Answers
The present value of this investment is $3.33 per year (if you are trying to pay a little each year proceeding the last)
Hope this helps and if I'm not correct you should see someone correct me pretty quickly.
Hope this helps and if I'm not correct you should see someone correct me pretty quickly.
Tristan,
Can you please give details on how you came up with this answer?
Can you please give details on how you came up with this answer?
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