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Harman [31]
2 years ago
12

Derek's friend, Jackson, is asking to borrow today with a promise to repay $7,418.87 in four years. If Derek could earn 5.45 per

cent annually on the any investment he makes today, how much would he be willing to lend Jackson today
Business
1 answer:
Aneli [31]2 years ago
7 0

The amount Jackson would be willing to lend is $6,000.

<h3>How much would Jackson be willing to lend?</h3>

In order to determine the  amount Jackson would be willing to lend, the present value of the amount Dereck would repay in 4 years. Present value is the sum of discounted cash flows.

Present value = $7,418.87 / (1.0545^4) = $6,000

To learn more about present value, please check: brainly.com/question/26537392

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