Two payments of $2,000 each are to be received six and twelve months from now. If money is worth 10%, what is the total equivalent value of the payments:
a) Today?
b) Six months from today?
c) Explain why the answer in part (b) is larger.

Question

Quizplus · Accepted Answer

The Answer of Two payments of $2,000 each are to be received six and twelve months from now. If money is worth 10%, what is the total equivalent value of the payments:
a) Today?
b) Six months from today?
c) Explain why the answer in part (b) is larger.

Two Payments of $2,000 Each Are to Be Received Six