Question

In: Economics

Draw a graph showing the present value of a $1000 payment made 10 year in the...

Draw a graph showing the present value of a $1000 payment made 10 year in the future on the y-axis, and discount rate on the x-axis.

Solutions

Expert Solution

Interest rate NPV
0% $1,000.00
1% $905.29
2% $820.35
3% $744.09
4% $675.56
5% $613.91
6% $558.39
7% $508.35
8% $463.19
9% $422.41
10% $385.54
11% $352.18
12% $321.97
13% $294.59
14% $269.74
15% $247.18
16% $226.68
17% $208.04
18% $191.06
19% $175.60
20% $161.51
21% $148.64
22% $136.90
23% $126.17
24% $116.35
25% $107.37
26% $99.15
27% $91.61
28% $84.70
29% $78.36
30% $72.54
31% $67.19
32% $62.27
33% $57.74
34% $53.57
35% $49.74
36% $46.20
37% $42.93
38% $39.92
39% $37.14
40% $34.57
41% $32.20
42% $30.00
43% $27.97
44% $26.08
45% $24.34
46% $22.72
47% $21.22
48% $19.83
49% $18.54
50% $17.34

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