# Present Value

Not what you're looking for?

Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (for example, present value and future value) was used and why?

##### Purchase this Solution

##### Solution Summary

Present Value calculations are examined.

##### Solution Preview

The current value of future payments is determined with present value tables. These tell us how much money in the future is worth today. As interest rates increase, the value of future payments declines. This is because money today could be invested at this ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.