Determine the present value if $15,000 is to be received at the end of eight years and the...
Question:
Determine the present value if $15,000 is to be received at the end of eight years and the discount rates is 9 percent. How would your answer change if you had to wait six years to receive $15,000?
Present value:
Present value is a part of the time value of money concept. This concept is used to calculate the power of money received today compared with the power of money received in the future.
Answer and Explanation:
Become a Study.com member to unlock this answer! Create your account
View this answer
Let us calculate present value with the help of a formula:
{eq}\boldsymbol{PV} = \boldsymbol{\frac{FV}{(1+r)^n}} {/eq}
where,
- PV = Present value...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:

Get access to this video and our entire Q&A library
Related to this Question
Spending $1,500 more today for a hybrid engine...
You have a 2-year investment horizon and are...
Describe in detail how to calculate the present...
An acre planted with walnut trees is estimated to...
Your broker offers to sell you some shares of...
John wants to make a deposit on 1/1/2016 to be...
Consider the following stream of cash flows: $500...
Pilot Plus Pens is deciding when to replace its...
Superserv Inc. intends to acquire new equipment...
A 9-year project has an initial fixed asset...
A new computer system will require an initial...
Suppose you are committed to owning a $207,000...
Explore our homework questions and answers library
Browse
by subject