Question: Hello, Is this this true even though the Future values change each year? Present Value = $103,000/ ( 1+25% ) 1 + $103,000/ (1 +25%
Hello,
Is this this true even though the Future values change each year?
Present Value = $103,000/ ( 1+25% )1 + $103,000/ (1 +25% )2 + $103,000/ (1+25%)3 + $103,000/ (1+25%)4 +$103,000 / (1 +25%)5+
$103,000/ (1+25%)6 = $82,400 + $ 65,920 + $ 52,736 + $42,188.8 + $33,751.04 + $27,000.832 = $303,996.672
Present Value- current value of a future sum of money or stream of cash flows given a specified rate of return.
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