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The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

User Kerriann
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final = original x multiplier^n

n is the number of years

First, determine the multiplier:

5% decrease ==> 0.95

Substitute the values into the equation:

final = 10,000 x 0.95^5

Solve:

final = 7737.809375

The answer is $7737.81

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User Manuel Pardo
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