You invest $2,100 today and expect to sell your investment for $4,200 in 9 years.
a-1. Calculate the present value of the future payoff, if the interest rate is 5%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
a-2. Is this a good deal?
Yes
No
b-1. Calculate the present value, if the interest rate is 9%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b-2. Is this a good deal?
Yes
No