The present value of of $6,811 to be received in one year if the discount rate is 6.5 percent will be $6, 395.31.
What does Present Value mean?
A financial concept that calculates the current value of a future sum of money or stream of cash flows is present value. It's used to compare the relative worth of different amounts of money that aren't available at the same time. The inverse of future value. The sum of future investment returns discounted at a specified rate of return is calculated as the present value of money you expect from future income.
What is Financial concept?
Financial concepts are the fundamental principles and theories of finance, which provide guidance on how to assess and manage financial risks, return, and value. These concepts include the time value of money, diversification, risk-return trade-off, capital budgeting, and portfolio selection. Financial concepts are essential for making sound financial decisions and investments.
The procedure to find an present value:
Present Value = FV/ (1+i)^n
6,811/(1+0.065)^1
6, 395.31
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Answer:
The given statement is true, that can be defined as follows:
Explanation:
They continue always to have a supervisor unless the financial are all, which collapses to regulation is criticized in constructing practices and regulations for the divestiture lock, so if the international banks repatriate throughout a nation, which results in monetary uncertainty in the world, they take the required measures to cope with both the problems faced by the moon inside the economic system.
The financial and monetary system of a nation is controlled and corrective actions are taken to resolve moon-facing financial problems through the liquidation of banks. Its national economy is collapsing with just a regulator, but any money problems emerge in a difficult area unit to control.
