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The present value of $10,000 to be received in 10 years, discounted at an annual rate of 6.78%, is closest to:
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The present value of $10,000 to be received in 10 years, discounted at an annual rate of 6.78%, is closest to:

User Kizoso
by
5.8k points

1 Answer

4 votes

Answer:

PV= $5,189.21

Step-by-step explanation:

Giving the following information:

The present value of $10,000 to be received in 10 years, discounted at an annual rate of 6.78%.

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

PV= 10,000/(1.0678^10)

PV= $5,189.21

User DFW
by
6.1k points
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