Calculate the present value of the following single payments:

Present value formula: PV = FV/(1+r)ⁿ

1. $10,000 received five years in the future given a discount rate of 4%

$10,000/(1.04

1. $10,000 received 10 years in the future given a discount rate of 4%
2. $10,000 received five years in the future given a discount rate of 8%.How much different is the value compared with part (a)?
3. $10,000 received 10 years in the future given a discount rate of 8%. How much different is the value compared with part (c)?

Answer rating: 100% (QA)

To calculate the present value of the payments we can use the present value formula PV FV 1rn where ... View the full answer