Present value concept
a. What single investment made? today, earning 7?% annual? interest, will be worth $5,300 at the end of 3 years?
b. What is the present value of $5,300 to be received at the end of 3 years if the discount rate is 7 %?
c. What is the most you would pay today for a promise to repay you $5,300 at the end of 3 years if your opportunity cost is 7?%?
d. ?Compare, contrast, and discuss your findings in part a through c.