Question

At the end of 7 years, an investment with a discount rate of 12% is worth $300. What is the present value?

The present value is $ _____

Answer 1

Step-by-step explanation:

Apr=Annual × percentage× rate

7years × 12% × $300

= 36000.

Answer 2

The present value of the annuity will be $135.

What is present value?

The current value of a certain amount in the future by methods of charging compounded interest is known as present value. By using the given information, the present value can be calculated as,

$\rm Present\ Value= FV\ x\ \dfrac{1}{(1+r)^n}\\\\\rm Present\ Value=300\ x\ \dfrac{1}{(1+0.07)^1^2}\\\\\rm Present\ Value=\ 135.70$

Hence, the present value is calculated as above.

Learn more about present value here:

https://brainly.com/question/17322936

#SPJ2