Question

three formulas for calculating present value are shown below. Part 1: Using complete sentences, explain how each of these formulas is used. Part 2: Create an example scenario for at least one of the formulas.

Answer 1

in 20 year you will receive a money worth $100,000 from your trust founded that is provided by your parents to you. what would be the value of your trust found if you will received it today, used interest rate of 10%.
P = F / (1+i)^n
P = 100000 / ( 1 + 0.1 ) ^ 20
P = $ 14,864 is the present value of your trust fund if you will recieved it today