A distant cousin named you in their will and has made provisions so that you will...
A distant cousin named you in their will and has made provisions so that you will receive a single lump sum payment of $60900 in 5 years. What is that worth today, assuming an interest rate of 13 percent? (Enter your answer as a positive number)
Homework Answers
Lump sum payment = $60,900
Time period = 5 years
Interest rate = 13%
Present value = Lump sum payment / (1 + Interest rate)^Time
period
Present value = $60,900 / 1.13^5
Present value = $33,054.08
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