What is the present value of the following future amounts?
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What is the present value of the following future amounts?
a. $800 to be received 10 years from now discounted back to the present at 10 percent
b. $300 to be received 5 years from now discounted back to the present at 5 percent
c. $1,000 to be received 8 years from now discounted back to the present at 3 percent
d. $1,000 to be received 8 years from now discounted back to the present at 20 percent
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This solution shows how to determine the present value of future amounts ith calculations.
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What is the present value of the following future amounts?
We have to calculate the present value using present value factor (PVIF)
The PVIF can be obtained from Present Value Tables
a. $800 to be received 10 years from now discounted back to the present at 10 percent
n= 10 years
r= 10.00%
PVIF (10 years, 10.% rate ) ...
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