What is the present value of $ 7 comma 000$7,000 received: a. TwentyTwenty years from today when the interest rate is 4 %4% per year? b. TenTen years from today when the interest rate is 4 %4% per year? c. FiveFive years from today when the interest rate is 4 %4% per year?
The present value is calculated using the PV function in excel as follows:
a. =PV(4%,20,0,7000) = 3,194.71
b. =PV(4%,10,0,7000) = 4,728.95
c. =PV(4%,5,0,7000) = 5,753.49
What is the present value of $ 7 comma 000$7,000 received: a. TwentyTwenty years from today...
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