delgadillojason8037 delgadillojason8037
  • 01-07-2021
  • Business
contestada

What is the present discounted value of $10,000 that is to be received in 2 years if the market rate of interest is 4 percent?
a. 0 percent. b. 8 percent.c. 12 percent.

Respuesta :

facundobuzzetti
facundobuzzetti facundobuzzetti
  • 10-07-2021

Answer:

PV = $9,245.56

Explanation:

Giving the following information:

Future value (FV)= $10,000

Number of periods (n)= 2 years

Discount rate (i)= 4% = 0.04

To calculate the present value (PV), we need to use the following formula:

PV = FV / (1 + i)^n

PV = 10,000 / (1.04^2)

PV = $9,245.56

Answer Link

Otras preguntas

What was Johann Gutenberg's great contribution to the world?
The balance in the prepaid rent account before adjustment at the end of the year is $21,000, which represents three months’ rent paid on december 1. the adjusti
How media influence public opinion of sport negatevely and positively?
I need help again please help
Consider the following set of equations: Equation M: 3y = 3x + 6 Equation P: y = x + 2 Which of the following best describes the solution to the given set of e
The Chinese dynasty that followed the Xia was called
Solve this inequality: 8z + 3 – 2z < 51
Solve the equation by factoring. z^2-6z-27=0
A speedboat moving at 31.0 m/s approaches a no-wake buoy marker 100 m ahead. the pilot slows the boat with a constant acceleration of −4.00 m/s2 by reducing the
what is the percent composition in chloric acid (HClO3)?