What is the present value of $7,220 to be received at the end of each of 18 periods, discounted at 5% compound interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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Ответ:
The Present Value is $6,710.
Explanation:
The formula to calculate Present Value is:
Formula: Present Value = Future Value
(1 + Discount rate)^Number of periods
Since the Percentage to be used annually. We can replace number of periods which is 18 by 1.5 and substitute the remaining values accordingly:
PV = 7220
(1+0.05)^1.5
PV = 6710
Ответ:
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