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Homework answers / question archive / You have an investment that will mature in 33 months and have a value of $4300

You have an investment that will mature in 33 months and have a value of $4300

Finance

You have an investment that will mature in 33 months and have a value of $4300. You need some quick cash and decide to sell today at a discount rate of 8.2% compounded quarterly. What is the cash value?

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no of periods = 33 months / 3 = 11 quarterly periods

Present value = Future value / (1 + interest rate / compounding frequency)no of periods

Present value = $4300 / (1 + 8.2% / 4)11

Present value = $3439.7379 or $3439.74

Cash value = $3439.74

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