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Mandarinka [93]
3 years ago
9

If I will receive a payment of $121 two years from now and the annual interest rate is 10 percent, the present value of the paym

ent is:

Business
1 answer:
Elena-2011 [213]3 years ago
4 0

Answer:

$100

Explanation:

The present value of a cash flow can be found by discounting the cash flow at the annual interest rate.

The formula for finding present value can be found in the attached image.

The present value can be calculated using a financial calculator.

Cash flow in year one = 0

Cash flow in year two = $121

Discount rate = 10%

Present value = $100

I hope my answer helps you

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Google Analytics can remove a cookie in the user's browser when an user logs the website.

Cookies are tiny files with user interaction information.

Google Analytics can use these cookies to learn how a person complies with your website and gather this information in order to send you various reports.

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