We need to calculate the present value (the value at time period 0) of receiving a single

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We need to calculate the present value (the value at time period 0) of receiving a single amount of $1,000 in 20 years. The interest rate for discounting the future amount is estimated at 10% per year compounded annually.

The following timeline depicts the information we know, along with the unknown component (PV):

Related Book For answer-question

Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

Posted Date: Aug 15, 2020 05:01 PM

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We need to calculate the present value (the value at time period 0) of receiving a single

Question:

PV = ?? FV = $1,000 +1 year +1 year + 1 year + 1 year 1 2 3 19 20 n= 20 years;i = 10% per year PV = ?? FV = $1,000 +1 year +1 year + 1 year + 1 year 1 2 3 19 20 n= 20 years;i = 10% per year

Expert Answer:

Calculation Using the PV of 1 Formula Using the formula to determine ... View the full answer

Accounting

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