The present value for a $4,200 investment at 1.10% interest rate is $4,210 in 1 year...

The present value for a $4,200 investment at 1.10% interest rate is $4,210 in 1 year true or false

Expert Solution

False ...After 1 year it would be future value ....not present value...Further PV of 4200 received after 1 years is shown as below:

Statement showing Cash flows
Particulars	Time	PVf 1.10%	Amount	PV
Cash flows	1.00	0.9891	4,200.00	4,154.30
PV of Cash flows				4,154.30

jeff jeffy answered 2 years ago

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