Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$6,001.61
Yuan$1,726.43
Zin$1,619.43
Jade$1,555.80
Carolll$1,522.43
Visitor$1,428.33
Visitor$1,373.33
zy$1,349.70
cuiting$1,289.70
Visitor$1,268.61
Visitor$1,251.28
Visitor$1,249.70
Visitor$1,153.33
Emma Lu$1,100.00
Skywalke...$1,070.00
mm11$1,050.33
ninalee$1,039.70
Visitor$1,035.61
Visitor$1,024.70
Doris$1,009.70
 

Question 499  NPV, Annuity

Some countries' interest rates are so low that they're zero.

If interest rates are 0% pa and are expected to stay at that level for the foreseeable future, what is the most that you would be prepared to pay a bank now if it offered to pay you $10 at the end of every year for the next 5 years?

In other words, what is the present value of five $10 payments at time 1, 2, 3, 4 and 5 if interest rates are 0% pa?




Copyright © 2014 Keith Woodward