Question

What is the present value (PV) of $50,000 received eighteen years from now, assuming the interest rate is 4% per year

Answer 1

$24,681.41

Step-by-step explanation:

In this question, we use the present value formula which is shown in the spreadsheet.

The NPER reflected the time period.

Provided that,

Future value = $50,000

Rate of interest = 4%

NPER = 18 years

The formula is presented below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be $24,681.41