What is the present value of $555 to be received in 10 years if the interest...

Question

Question

What is the present value of $555 to be received in 10 years if the interest rate is 17%

Answer 1

Answer #1

Future Value = $555
Interest Rate = 17%
Period = 10 years

Present Value = Future Value / (1 + Interest Rate)^Period
Present Value = $555 / 1.17^10
Present Value = $115.46

So, present value is $115.46 or $115

Answer 2

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