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satela [25.4K]
2 years ago
12

How much would $7,550 due in 50 years be worth today if the discount rate were 7.5%?

Business
1 answer:
Ivanshal [37]2 years ago
5 0

If we were to receive $7,550 in 50 years, in today's value and at a discount rate of 7.5%, it would be worth $203.

<h3>What is the present value of $7,550?</h3>

You can find this out through the formula:

= Amount / (1 + rate) ^ number of periods

Solving gives:

= 7,550 / ( 1 + 7.5%)⁵⁰

= 7,550 / 1.075⁵⁰

= $203

Find out more on present value at brainly.com/question/20813161.

#SPJ1

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