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9966 [12]
1 year ago
11

The present value of $100 paid annually at year end for 20 years at 10% per year is:________.

Business
1 answer:
Gre4nikov [31]1 year ago
3 0

$851.36 will be the present value of money for $100 after 20 years. The concept of present value states that an amount of money today is worth more than the same amount in the future. We can say that the value of money today won't be same after 10 years.

Money that is not spent today may be expected to lose value in the future at some implied annual rate, which may be inflation or the rate of return on investment. The present value formula reduces the future value to today's dollars by taking into account either the implied annual rate of inflation or the rate of return that could be obtained if a sum was invested.

To learn more about present value, click here

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Answer:

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Answer:

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Explanation:

Price of stock formula;

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The stated interest payment, in dollars, made on a bond each period is called the bond's?
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