drakevtran4916 drakevtran4916

13-01-2021
Business

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Suppose you will receive $500 in one year and the risk-free interest rate (rf) is 5%. The equivalent value today is closest to:

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abiolataiwo2015 abiolataiwo2015

16-01-2021

Answer:

$525

Explanation:

Calculation for The equivalent value today

Equivalent value=$500 × (1+.05)

Equivalent value=$500 × (1.05)

Equivalent value= $525

Therefore The equivalent value today is closest to:$525

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