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    Present Value

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    Suppose your bank account will be worth $7,000 in one year. The interest rate (discount rate) that the bank pays is 8%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 3%?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:05 pm ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/present-value-262686

    Solution Summary

    The solution explains how to calculate the present value

    $2.19

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