Explore BrainMass
Share

Present value on $104 a year from now

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

You expect to receive a payment of $104 one year from now. Your discount rate is 4 percent. What is the present value of the payment to be received? Suppose that the discount rate is 5 percent. What is the present value of the payment to be received?

© BrainMass Inc. brainmass.com March 21, 2019, 5:46 pm ad1c9bdddf
https://brainmass.com/economics/microeconomics/present-value-104-year-232395

Solution Preview

Present Value = Future Cash Flow / (1 + Required Rate of ...

Solution Summary

Present value is suggested. The payment received is examined.

$2.19