You will receive a cash payment of $7554 in 8 years. If the relevant interest rate is 15.34%, how much is it worth today? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.
You will receive a cash payment of $7554 in 8 years. If the relevant interest rate is 15.34%, how much is it worth today? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.
In the given case, we have given the cash payment to be received in 8 years is $7554. And, the interest rate of 15.34% is given .
So, the worth of the cash today is also called the present value of cash .
We have the formula to calculate the present value of today's worth of cash as follows:
Present value = Future value / (1+ interest rate )^ number of years
Explanation:
Worth of cash on today means the present value of cash if receives today . Future value of cash or expected cash to be received in 8 years. It means cash to be received in future which is in 8 years.
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