Question

5. To what present value would $250,000 received in ten years, assuming an annual discount rate of 15%?

6. To what present value would $500,000 received in six years, assuming an annual discount rate of 5%?

7. To what present value would $1,500,000 received in twenty years, assuming an annual discount rate of 9%?

Answer 1

5

Future value = present value*(1+ rate)^time

250000 = Present value*(1+0.15)^10

Present value = 61796.18