What is the present value of an investment that pays you $1,200 in 5 years’ time where annual interest rates are 8% compounded annually?
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What is the present value of an investment that pays you $1,200 in 5 years’ time where annual interest rates are 8% compounded annually?
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Simple and compound interestBeing able to discount future cash flows using a compound interest rate is a critical skill.What is the present value of an investment that pays you $1,200 in 5 years’ time where annual interest rates are 8% compounded annually?$816.70$1,111.11$857.14$1,104.00
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So if $200 is invested at an interest rate of 5% compounded quarterly, then the amount after 4 years is
If you invest $1,000 at a 6% annual interest rate, how much will it be worth in 5 years with annual compounding?a.$1,338.22b.$1,060c.$1,300d.$1,500
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