Question

compute the present value of an $1600 payment made in ten yrs when the discount rate...

compute the present value of an $1600 payment made in ten yrs when the discount rate is12 percent . do not round intermediate calculations, rd your ans to 2 decimals

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Future Value = $1,600
Period = 10 years
Discount Rate = 12%

Present Value = Future Value * (1 / Discount Rate)^Period
Present Value = $1,600 * (1 / 1.12)^10
Present Value = $1,600 * 0.32197
Present Value = $515.15

Add a comment
Know the answer?
Add Answer to:
compute the present value of an $1600 payment made in ten yrs when the discount rate...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT