Calculate the combined equivalent value today of $500 due today and $300 due in three months. Assume that money can earn 95%.

Combined Equivalent Value

Refers to a singular value that encapsulates the total worth or effect of multiple financial elements combined.

Due Today

An obligation, often financial, that is required to be paid or settled on the current day.

Grasp the methodology for calculating combined equivalent values of multiple cash flows today or at a future date, given a specific interest rate.

Verified Answer

Final Answer :

$830.88

Learning Objectives

Grasp the methodology for calculating combined equivalent values of multiple cash flows today or at a future date, given a specific interest rate.