Discounting one year what is the present value of a $650 payment in one year when the discount rate is 9 percent?

Question

asked Nov 6, 2024 18.5k views

1 Answer

Williamsandonz · Answer 1 · 2024-11-12T03:55:24+0000

Answer:

$591.50

Explanation:

Percentage of payment =100%

Percentage discount = 9%

Therefore Percentage of present value = 100-9= 91%

Present value =

$(91)/(100) * 650 \\ = 591.50$