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Paha777 [63]
3 years ago
14

If the market rate of interest is 6 percent, what is the present discounted value of $1,000 that will be paid in

Business
1 answer:
Pachacha [2.7K]3 years ago
6 0

The formula for percent discount value after n years at the rate r is given by 
pdv=fv/(1+r)^n 
where fv is the fixed value  
here only fixed value is given to us so we will calculate the discounted value for coming 10 years 
after  
year 1=943.4
 2=890
 3=839.62
 4=739.09
 5=747.26
 6=704.96
 7=665.06
 8=627.41
 9=591.90 
10=558.39
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