Question

Find the Present Value of $2000 due in 10 years if the discount rate is 15%...

Find the Present Value of $2000 due in 10 years if the discount rate is 15% per year

Inputs: NPER
RATE
PMT
PV ??
FV ** negative #
TYPE
0 0
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Answer #1

Function Arguments ? x PV 6 = 0.15 = 10 Rate 15% Nper 10 Pmt -2000 Type To = -2000 = number = 494.3694122 Returns the present

here,

rate = discount rate = 15%

nper = number of periods = 10 (given in question)

pmt = payment = 0

fv = future value = 2000(we have to use negative sign)

so the present value = 494.37(rounded to two decimals)

we can ignore type

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