Ask Question
29 March, 12:56

What is the present value of a $1,600 payment made in five years when the discount rate is 10 percent?

+3
Answers (1)
  1. 29 March, 13:08
    0
    Present value is $993.47

    Step-by-step explanation:

    PV = present value

    Fv = future value = $1,600

    Discount (i) = 10%

    N = Years = 5

    The formula for this is given by:

    PV = FV / (1 + i) ^N

    PV = $1600 / (1 + 0.10) ^5

    PV = $1600/1.1^5

    PV = $1600/1.61051

    PV = $993.47
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is the present value of a $1,600 payment made in five years when the discount rate is 10 percent? ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers