Present Value: The value of today’s amount expected to be paid or received in the future at a compound interest rate is called as present value. The present value of an amount is calculated by using the following formula: Present value of an amount = Future value ( 1 + interest rate ) number of periods To determine: The amount that K Enterprises invested to earn 5% rate of return .

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Chapter AG, Problem G.12BE

To determine

Present Value: The value of today’s amount expected to be paid or received in the future at a compound interest rate is called as present value. The present value of an amount is calculated by using the following formula:

Present value of an amount = Future value(1 + interest rate)number of periods

To determine: The amount that K Enterprises invested to earn 5% rate of return.

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