You are going to be given $100,000 in 12 years. Assuming an interest rate of 3.5%, what us the present value of this amount?
+130511 You are going to be given $100,000 in 12 years. Assuming an interest rate of 3.5%, what us the present value of this amount?
We have....(assuming yearly compounding)
100000 = A(1 + .035)12 where A is the present value .... divide both sides by (1 + .035)12
100000 / (1 + .035)12 = A = about $66178.33
+130511 You are going to be given $100,000 in 12 years. Assuming an interest rate of 3.5%, what us the present value of this amount?
We have....(assuming yearly compounding)
100000 = A(1 + .035)12 where A is the present value .... divide both sides by (1 + .035)12
100000 / (1 + .035)12 = A = about $66178.33
