Question

Calculating Present Values [LO1] An investment will pay you $80,000 in 10 years. If the appropriate...

Calculating Present Values [LO1] An investment will pay you $80,000 in 10 years. If the appropriate discount rate is 9 percent compounded daily, what is the present value?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

PV = FV / (1 + r)^t

PV = $80,000 / [1 + (0.09/365)]^(10 × 365)

PV = $80,000 / [1 + (0.09/365)]^3,650

PV = $32,529.18

Add a comment
Know the answer?
Add Answer to:
Calculating Present Values [LO1] An investment will pay you $80,000 in 10 years. If the appropriate...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT