Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in 10 years time. a) What is the discount factor assuming quarterly compounding at 7% interest rate? b) What is the present value? c) What happens to the present value if the payment was to occur in five years? d) What happens to the present value if the interest rate was 8% instead?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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Financial Mathematics

Please answer all parts of the question

Suppose you will receive $50,000 in 10 years time.
a) What is the discount factor assuming quarterly compounding at 7% interest rate?
b) What is the present value?
c) What happens to the present value if the payment was to occur in five years?
d) What happens to the present value if the interest rate was 8% instead?

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