You will receive a cash payment of $7072 in 7 years. If the relevant interest rate is 19.89%, how much is it worth today? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.
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You will receive a cash payment of $7072 in 7 years. If the relevant interest rate is 19.89%, how much is it worth today? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.
Time Value of Money states that a dollar earned today is more valuable than any time in the future, this is because they have earning capacity. This concept has led to another concept of annuity.
Present value is the discounted amount of the expected payment at the end of n year.
Here,
Future value = $7072
Number of years "n" = 7
Interest rate "r"= 19.89%
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