pcgumban | 
01 23rd, 2009| 
Funtravel asked:
1. Suppose your bank account will be worth $2,600.00 in one year. The interest rate (discount rate) that the bank pays is 3%. What is the present value of your bank account today?
1. Suppose your bank account will be worth $2,600.00 in one year. The interest rate (discount rate) that the bank pays is 3%. What is the present value of your bank account today?
2. Suppose you have two bank accounts, one called Account A and another Account B. Account A will be worth $4,000.00 in one year. Account B will be worth $7,000.00 in two years. Both accounts earn 4% interest. What is the present value of each of these accounts?
Benita