A woman sell laptop case and the woman has an opportunity to receive $ 200 two year from now.if she can earn 8% on her sale in the normal course events, what is the almost she should pay now for this opportunity.
We can know;
FV3=$200,n=2 and i=0.08
PV=FV n/(1+i)^n
Answer:
PV =$200/[(1+0.08)]^2
=$171.46
The values today (“present value”)of $200 received two year from today,given an opportunity cost of 8% is $171.46
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