Question

determine the present value of 15000 is to be received at the end of eight years and the discount rate is 9%

Answer 1

Answer:

PV= $7,528

Explanation:

Giving the following information:

Future value= $15,000

Number of periods= 8 years

Interest rate= 9% compounded annually

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

PV= 15,000/(1.09^8)

PV= $7,528