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lisov135 [29]
3 years ago
12

What is the present discounted value of $10,000 that is to be received in 2 years if the market rate of interest is 4 percent?

Business
1 answer:
ddd [48]3 years ago
7 0

Answer:

PV = $9,245.56

Explanation:

Giving the following information:

Future value (FV)= $10,000

Number of periods (n)= 2 years

Discount rate (i)= 4% = 0.04

<u>To calculate the present value (PV), we need to use the following formula:</u>

<u></u>

PV = FV / (1 + i)^n

PV = 10,000 / (1.04^2)

PV = $9,245.56

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Complete Question:

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