What is the present value
Problem:
Question 1: What is the present value of $5,500 received 9 years from now using a 12% interest or discount rate, with interest compounded annually? Explain comprehensively and provide step by step solution.
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College tuition has been rising at a rate of 7% per year. Currently the average tuition of a state college is $10,600 per year. Andrea's son Trevor will begin college in 9 years.
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What is the future value of $2,000 invested today at 9% interest in 8 years with interest compounded annually? Clarify comprehensively and provide step by step solution.
What is the present value of $5,500 received 9 years from now using a 12% interest or discount rate, with interest compounded annually? Explain comprehensively and provide step by step solution.
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What is the present value of $1,500 deposited at the beginning of each quarter year for 14 years earning 7.5% interest? Explain in detail.
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