Question

Compute the present value of $600 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Solution :

The present value of $600 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year is = $ 1589.52

Please find the attached screenshot of the excel sheet containing the detailed calculation.