When they are first born, Grandma gives each of her grandchildren a $4 comma 000 savings bond that matures in 18 years. For ea

Question

3 years ago

10

ch of the following grandchildren, what is the present value of each savings bonds if the current discount rate is 4.5%?

1 answer:

ladessa [460] · Answer 1 · 2022-06-06T19:55:53+03:00

5 0

Answer:

The answer is $1811.20

Explanation:

PV = C( 1+i)^-n

PV = 4000(1.045)^-18 = $1811.20

When they are first​ born, Grandma gives each of her grandchildren a ​$4 comma 000 savings bond that matures in 18 years. For ea