Question

Hans promised to receive 598 in 9 years. Hani, bang priate, prefers to spend this promised amount of money today. What is the equivalent present value of the settlement the rest wie is 200% Place your indoors and c o ntinue a do n or a comain your Work your analysis using i t four decimal places of accuracy SUBMIT ANSWER

Answer 1

Interest rate(r) = 2% = 0.02

Final Value(F) = $95

Time(n) = 9 years

Present Value = F/(1+r)ⁿ

= 95/(1+0.02)ⁿ

= 95/(1.02)⁹

= 95/1.19509

= $79.49719 Answer

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