here is my question:
"You are given an investment opportunity requiring $5000 which will give you a single payment at the end of 10 years. The interest rate is 14% how much will you receive at the end of the 10 years?
I looked at the Present value table and found the rate to be 0.270
My teacher divided 5000 by 0.270 and i do not know why.
Why did he divide it?
"You are given an investment opportunity requiring $5000 which will give you a single payment at the end of 10 years. The interest rate is 14% how much will you receive at the end of the 10 years?
I looked at the Present value table and found the rate to be 0.270
My teacher divided 5000 by 0.270 and i do not know why.
Why did he divide it?