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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
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.

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