Question

Compute the present value of an $850 payment made in ten years when the discount rate is 12 percent. (Do not round intermedia
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Answer #1

PV = FV/(1 + r)^n

PV = 850/(1 + 0.12)^10

PV = 850/3.1058482083

PV = 273.677251106

PV = $273.68

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