Explore BrainMass

Explore BrainMass

    Present value and interest rate

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Compute the present value of $1000.00 to be received in 5 years if the interest rate is likely to be 3% over that period.

    How does the present value change if the interest rate is higher than 3%? Lower?

    © BrainMass Inc. brainmass.com March 4, 2021, 10:26 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/present-value-interest-rate-331759

    Solution Preview

    Compute the present value of $1000.00 to be received in 5 years if the interest rate is likely to be 3% over that period.
    How does the present value change if the interest rate is higher than 3%? Lower?

    Present ...

    Solution Summary

    Response helps in explaining present value

    $2.49

    ADVERTISEMENT