Cash Flow Present Discounted Value Interest Rate is based on the notion that a d

Question

Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 4% is $ nothing. (Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 4% interest rate, the present value of the loan is $ nothing. (Round your response to the neareast two decimal place)

Explanation / Answer

1)

The present value of a loan=3000/(1+4%)^1=2884.62

2)

the present value of the loan is=3000/(1+4%)^2=2773.67

the above is answer..

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