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If the market rate of interest is 6 percent, what is the present discounted value of $1,000 that will be paid in
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Dec 26, 2018
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If the market rate of interest is 6 percent, what is the present discounted value of $1,000 that will be paid in
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Arkonautom
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The formula for percent discount value after n years at the rate r is given by
pdv=fv/(1+r)^n
where fv is the fixed value
here only fixed value is given to us so we will calculate the discounted value for coming 10 years
after
year 1=943.4
2=890
3=839.62
4=739.09
5=747.26
6=704.96
7=665.06
8=627.41
9=591.90
10=558.39
AlanPear
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Dec 31, 2018
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