You are considering an investment that has a payoff of $46,276.27 in 10 years. If the interest rate is 5.13%, and interest is compounded monthly, then what is this investment worth to you today?
Answer =
Cash Flow =
R =
N =
FV = PV [ (1+r)^n ]
46276.27 = PV [ (1 + 0.004275)^120 ]
= PV [ (1.004275)^120 ]
= PV * 1.6685
PV = 46276.27 / 1.6685
= $ 27735.76
Tdaoys Value is 27735.76
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