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1. Present Value (PV): In ten years you will inherit $100,000 from your grandfather’s trust. If...

1. Present Value (PV): In ten years you will inherit $100,000 from your grandfather’s trust. If interest rates are at 5%, how much is this worth today?

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Answer #1

Present value=100,000*present value of discounting factor (5%,10)

=100,000/1.05^10

=100,000*0.613913254

=61391.33(approx).

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