What is the present value of 15000 that will be received in 7 years in the...
What is the present value of 15000 that will be received in 7 years in the future, assuming an annual interest rate of 7.5% and compounded annually?
Homework Answers
Information provided:
Future value= $15,000
Time= 7 years
Yield to maturity= 7.50%
The present value is calculated by entering the below in a financial calculator:
FV= 15,000
N= 7
I/Y= 7.50
Press the CPT key and PV to calculate the present value
The value obtained is $9,041.32.
Therefore, the present value of $15,000 is $9,041.32.
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