., If your client did NOT add any monthly contributions to the 401K account, what will the initial value of $7,100 grow to after 10 years? Assume monthly compounding. DO NOT DO ANY INTERMEDIATE ROUNDING OR YOUR ANSWER MAY BE MARKED WRONG. Answer = $ (Round to two places)

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.