Kaylinne8882 Kaylinne8882

12-02-2020
Business

contestada

Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three years. If the Federal Reserve has set the risk-free interest rate at 8 percent, what is the proper current price of this investment?

Respuesta :

kaympoey08 kaympoey08

13-02-2020

Answer:

The answer is $ 257.70

Explanation:

PV= Σ of discounted payments

PV = 100(1.08^-1) + 100(1.08^-2) + 100(1.08^-2)= $ 257.70

Answer Link

Otras preguntas

PLEASE HELP!!! A ball-and-stick model of a molecule provides much the same information as a _____. space-filling model molecular formula structural formula chem

What does retrospect mean? A. an inspection of a childhood B. a decision about a family C. an idea about women's roles D. a contemplation of something past

Next year you want to have 7 more than triple the amount of plants you had this year. How many total plants should you have for next year?

SOMEONE PLEASE HELP ME ASAP PLEASE!!

3. A car moves from rest with uniform acceleration along a horizontal road. After travelling a distance of 100 metres, it has kinetic energy equal to 200000 J.

Conrad Jackson is a 28 - years man who presents to the emergencg department with severe fatigue and dehydration secondary to a 4- day history of vomiting. Do yo

Who were the Carpetbaggers? A. Northerners who came to South after the Civil War B. Northerners who argued against the return of southern states to the Union C.

Please answer this correctly without making mistakes

Please can you tell me what your opinion I want about if we should give money to beggars in streets yes or no and why??

Which of the following is not a negative consequence of upward urban growth? a pollution b. creation of a "heat island" C. increased use of surrounding land d.