Ivana Vukadinovic (Presenting) In addition, Red Rock Construction owes Abco Inc. $824, due to be paid six months from now. Suppose Red Rock Construction offers to pay the debt today. How much should Red Rock Construction pay Abco Inc. if money is worth 6%? Since Abco Inc. could invest the payment at 6%, the payment should be the sum of money that will grow to $824 in six months earning 6% p.a. interest. By definition, this amount of money is the present value of the $824. The present value represents today's dated value of the $824 and is found using Formula

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