Explore BrainMass
Share

Solving for the Present Value of Money

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

The presents value P that will amount to A dollars in 'n' years with interest compounded annually at annual interest rate 'r' is given by P=A(1+r)^(-n).

Find the present value that will amount to $50,000 in 20 years at 8% compounded annually.

© BrainMass Inc. brainmass.com September 22, 2018, 3:32 pm ad1c9bdddf - https://brainmass.com/business/interest-rates/solving-present-value-money-196766

Solution Summary

The solution calculates the present value of money.

$2.19