Overview
How much money should you be willing to pay now for a guaranteed $600 return per year for 9 years, at an interest rate of 15 % per year? (assume the compound interest rate is not changing).
- 1. Draw the CFD correctly and make sure everything is fully labeled
- 2. Calculate the amount you are willing to pay (use the equation) and explain your thought process, do not assume the reader knows the subject or already an expert
- 3. Calculate the amount you are willing to pay (use and explain table) and explain your thought process,do not assume the reader knows the subject or already an expert
- 4. Write and read the functional notation correctly