What is the discounted value of $1185.00 paid at the end of every three months for 4 years if interest is 12% per annum oompounded annualy?The discounted value is S(Round the final atiswer to the nearest cent as noeded. Round ali intermodiate values to six decimal places as noeded.)

Using excel PV function to calculate the discounted value

What is the discounted value of $1185.00 paid at the end of every throe months for 4 years if interest is 12% per annum oompounded annually? The discounted value is S (Round the final answer to the nearest cent as noeded. Round all intermodiate values to six decimal places as noeded)

What is the discounted value of $1185.00 paid at the end of every throe months for 4 years if interest is 12% per annum oompounded annually? The discounted value is S (Round the final answer to the nearest cent as noeded. Round all intermodiate values to six decimal places as noeded)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 7P

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Concept explainers

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.

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What is the discounted value of $1185.00 paid at the end of every three months for 4 years if interest is 12% per annum oompounded annualy?
The discounted value is S
(Round the final atiswer to the nearest cent as noeded. Round ali intermodiate values to six decimal places as noeded.)

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