CFIN
CFIN
6th Edition
ISBN: 9780357144039
Author: BESLEY
Publisher: CENGAGE L
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Chapter 4, Problem 6PROB
Summary Introduction

The future value is $12,500 due in 12 years at a 7% interest rate.

Present value is the current value of future investment or series of future payments at a predetermined interest rate for a specified period.

PV=FV(1+r)n

Here,

The present value is “PV”.

The future value is “FV”.

The interest rate is “r”.

The maturity period of time period is “n”.

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