What is the present value (PV) of $ 60000 received eighteen years from now, assuming the interest rate is 6% per year?
Ans $ 21020.63
FV = | Future Value |
PV = | Present Value |
r = | rate of interest |
n= | no of period |
PV = | FV/ (1 + r )^n |
PV = | 60000 / ((1 + 6%)^18) |
PV = | 21020.63 |
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