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hichkok12 [17]
3 years ago
5

Eliza has the opportunity to receive $15,000 in four years. Assume the annual interest rate is 10%, what is the present value?

Business
1 answer:
KonstantinChe [14]3 years ago
3 0

Answer:

$10,245.20

Explanation:

The present value by the Eliza shall be determined through below mentioned formula:

Present value=Future value(1+i)^-n

In the given question

Present value=?

Future value= Amount that the Eliza will receive after four years=$15,000

i=interest rate involved=10%

n=number of years after which the $15,000 will be received=4

Present value=$15,000(1+10%)^-4=$10,245.20

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