Help Secure I httpswwwmathad aspx 1centerw SAM 3100 Online S

Help Secure I https://www.mathad aspx 1&centerw; SAM 3100 Online Spring 2017-2018 Abby Neff 1/27/18 1:00 AM Homework: Chapter 3 Homeworlk Save Score: 0 of 1 pt Bofl8 (7 complete) MN Score: 32.14%, 6.75 of 21 pts P 3-12 (book/static) Question Help You plan to borrow $4,000 from a bank. in exchange for $4,000 today, you promise to pay $4,240 in perspecive? What does it look lke from the bank\'s perspective? one year What does the cash flow timeline look lke from What does the cash flow timeline look like from your penspective? (Select the best choice below) $4,240 $4,000 B. -$4.240 $4,000 4,000$4240 $4,000 $4,240 Click to select your answer and then click Check Answer remaining

Solution

Option D is correct
We have taken a loan today which becomes the present value in year 0 and after 1 year we are returning the money 4240 . Therefore, the values shown in year 0 is -$4000 and in year 1 is $4240