What is the present value of $10,000 discounted at a rate of 5% per year if received at the end of 5 years?
To calculate the present value (PV) of an amount of money that you will receive in the future, we use the formula: PV = FV / (1 + r)^n Where: PV = Present Value FV = Future Value ($10,000 in this case) r = discount rate (5% or 0.05) n = number of years until … Read more