You are receiving $52,000 at the end of 15 years at 12% per year. The present...

Question

Question

You are receiving $52,000 at the end of 15 years at 12% per year. The present value of this amount at moment zero is then:

Group of answer choices

$5,090

$9,500

None of these

$5,900

Answer 1

Answer #1

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Please refer the solution below.

Statement showing computation

Present value= Future value*1/((1+rate)^number of years)

Future value= $52000

rate= 12%

number of year=15

Present value= 52000*1/((1+0.12)^15)

Present value= 52000*0.182696261= $9500

So correct answer is $9500

Answer 2

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