What is the Present Value of receiving $100,000 in 20 years if interest rates are 5%?

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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What is the Present Value of receiving $100,000 in 20 years if interest rates are 5%?
Reference the following formulas to solve the problem:
PV = FV (1+r)^t
FV= PV / (1+r)^t
-1)/r
PVA PMT(((1-(1+r)^-t) /r))
F
FVA= PMT(((1+r)^t)
Transcribed Image Text:What is the Present Value of receiving $100,000 in 20 years if interest rates are 5%? Reference the following formulas to solve the problem: PV = FV (1+r)^t FV= PV / (1+r)^t -1)/r PVA PMT(((1-(1+r)^-t) /r)) F FVA= PMT(((1+r)^t)
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