Asked by Gisell Garcia on May 04, 2024
Verified
What is the present value of $10,000 8 years from now if the interest rate is 8%?
Present Value
The determination of today's monetary value for a future cash sum or succession of cash flows, applying a chosen rate of return.
Interest Rate
The portion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Years From Now
A phrase referring to an unspecified point in the future, measured from the current date.
- Calculate the present value of a future sum of money given an annual interest rate and timeframe.
- Employ the present value methodology to ascertain the today's dollar equivalence of anticipated future payments or receipts.
Verified Answer
AN
Learning Objectives
- Calculate the present value of a future sum of money given an annual interest rate and timeframe.
- Employ the present value methodology to ascertain the today's dollar equivalence of anticipated future payments or receipts.