PV for interest of 1% annually
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What is the present value of the following cash flows at an interest rate of 10% per year?
a) $100 recieved five years from now.
b) $100 received 60 years from now.
c) $100 received each year beginning one year from now and ending 10 years from now.
d) $100 received each year from 10 years beginning now.
e) $100 each year beginning one yaer from now and continuing forever.
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a) $100 recieved five years from now.
PV = CFt / (1+r)^t
PV = 100 / (1 + .1)^5
$62.09
b) $100 received ...
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