End of Chapter 18 Questions and Answers

6. What is the future value of $25,000 which grows at an annual interest rate of 11% per year for two years? Answer: 25000*1.112 = $30,802.5. 7. What is the present value of an offer of $15,000 one year from now if the opportunity cost of capital (discount rate) is 12% per year nominal annual rate compounded monthly? ................
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