UPS charges $7 for the first pound, and $0.20 for each additional pound. FedEx charges $5 for the first pound and $0.30 for each
1 answer:
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Answer:
Present Value =
Step-by-step explanation:
To find - If discount rate is 12%, the present value of Rs X received at the end of each year for the next five years is equal to .... ?
Solution -
We know that, formula for finding the Present vale is given by
Present value = Future value / (1 + r)ⁿ
where r is the rate of interest
and n is Number of periods
Now,
Here in the question, we have
r = 12% = 12/100 = 0.12
n = 5
Also, Given that, we have received Rs X at the end of each year
So,
Present Value =
=
⇒Present Value =