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# Present Value of \$10,000 with Varying Interest Rates

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What is the present value of \$10,000 received
a. 12 years from today when the interest rate is 4% per year?
b. 20 years from today when the interest rate is 8% per year?
c. 6 years from today when the interest rate is 2% per year?

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#### Solution Preview

We use the Present Value formula
PV = FV/(1+rate)^n
where
FV = \$10,000 as given
Rate is as given and ...

#### Solution Summary

The solution explains how to calculate the present value and then goes through each question to show how to apply the formula.

\$2.19
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