What is the present value of $800 to be received nine years from now discounted back...
What is the present value of $800 to be received nine years from now discounted back to the present at 10%?
Homework Answers
Future Value = $800
Interest Rate = 8%
Period = 9 years
Present Value = Future Value / (1 + Interest Rate)^Period
Present Value = $800 / 1.08^9
Present Value = $800 / 1.999005
Present Value = $400
So, present value is $400
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