If you are offered $5,000 in 13 years and you can earn 12 percent on your money, what is the present value of $5,000?

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Question

Answer 1

Answer #1

Present value=$5000*Present value of discounting factor(rate%,time period)

=$5000/(1.12)^13

which is equal to

=$1145.87(Approx).

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Answer 2

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