Answered

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Nabax has an investment that is worth $41,600 and has an expected return of 14.56 percent. The investment is expected to pay her $27,200 in 2 years from today and X in 5 years from today. What is X?

Sagot :

Answer:

The answer is "$41189.19"

Explanation:

Using formula:[tex]\text{Present value=Cash flows} \times \text{Present value of discounting factor(rate \ \%, time period)}[/tex]      

[tex]\to 41600=\frac{27200}{1.1456^2}+ \frac{X}{1.1456^5}\\\\\to 41600= (27200 \times 0.761963188)+(X \times 0.506798097)\\\\\to 41600=20725.3987+(X \times 0.506798097)\\\\\\to X=\frac{(41600-20725.3987)}{0.506798097}\\\\[/tex]

         [tex]=\$41189.19[/tex]

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