The 2-year discount factor is 0.80. a. What is the present value of $1 to be received in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the present value of $2,850? (Do not round intermediate calculations.)

Answer

a. PV=$0.31

b. PV=$879.63

Step-by-step explanation:

PV = F / [ (1 + r)^n ]

where

PV = Present Value,

F = Future payment (cash flow),

r = Discount rate=0.80

n = the number of periods in the future=2

a. F=$1

PV =  1/[(1 + 0.8)^ 2]

=1/ [1.8]^2

=1/3.24 =$0.31

b. F=$2,850

PV =  2850/[(1 + 0.80)^ 2]

=2850/ [1.8]^2

=2850/ 3.24

=$879.63

22 and 22

step-by-step explanation:

10 plus 12 equals 22.

12 plus 10 also equals 22 because regardless of what order they're in, they're gonna equal the same thing.

hello from mrbilldoesmath!

answer:

the domain is the set { -2, 0, 2, 3}

discussion:

the domain is the set of x values in the ordered pairs (x,y). taking the x, or first component, of each ordered pair gives   -2, 0, 2, 3.

you,

mrb