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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Present Value
Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. …
Question

Find the interest rate implied by PV of $390, FV of $577 over 10 years

Expert Solution
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Step 1

present value  = $390

future value = $577

no.of.years =10 years

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