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. P V = F V ( 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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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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