Question

18) You will receive $6,500 three years from now. The discount rate is 8 percent.   a.What is the value of your investment two years from now? Multiply $6,500 × .926 (one year’s discount rate at 8 percent). (Round your answer to 2 decimal places.)   Value of investment$      b.What is the value of your investment one year from now? Multiply your rounded answer to part a by .926 (one year’s discount rate at 8 percent). (Round your answer to 2 decimal places.)   Value of investment$      c.What is the value of your investment today? Multiply your rounded answer to part b by .926 (one year’s discount rate at 8 percent). (Round your answer to 2 decimal places.)   Value of investment$      d.Confirm that your answer to part c is correct by going to the link provided below (present value of $1) forn = 3 and i = 8%. Multiply this tabular value by $6,500 and compare your answer to part c. There may be a slight difference due to rounding. Use Appendix B. (Round your answer to 2 decimal places.)   Present value$    e.Now compute the present value of $6,500 for 3 years at 8 percent using the formula and financial calculator methods. (Do not round intermediate calculations. Round your answer to 2 decimal places.)   Present value$

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