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The Solution to This Problem Requires Time Value of Money 1.338×1.3381.338 \times 1.338

question 30

Short Answer

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. If the interest factor used to calculate the future value of $1 at 6% for 5 periods is 1.338, then the present value of $1 at 6% for 5 periods is a. 1.338×1.3381.338 \times 1.338 .
b. 1/1.3381 / 1.338 .
c. 1/(1.338×1.338)1 / ( 1.338 \times 1.338 ) .
d. 0.3380.338 .


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