Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Effective Interest Rate
The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.
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What is the present value of $ 42,000 to be received 6 years from today, assuming an annual discount rate of 9 percent? Round your answer to 2 decimal places

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