Find the present value of the following future amount. $300,000 at 12% compounded semiannually for 15 years What is the present value? $ (Round to the appropriate cent.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Find the present value of the following future amount.
$300,000 at 12% compounded semiannually for 15 years
What is the present value?
(Round to the appropriate cent.)
Transcribed Image Text:Find the present value of the following future amount. $300,000 at 12% compounded semiannually for 15 years What is the present value? (Round to the appropriate cent.)
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Present Value refers to a concept that states the discounted value or say value at today's time of cash flows which were to receive in the future at some certain specified time period, at a given specified rate of discount. An inverse or say negative relationship exists between the discount rate and the present value. The higher the discount rate leads to a decrease in present value and the lower the discount rate, the present value tends to increase.  

 
 
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