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Foundations Of Financial Management
Found in: Page 282
Foundations Of Financial Management

Foundations Of Financial Management

Book edition 16th
Author(s) Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Pages 768 pages
ISBN 9781259277160

Short Answer

Question: You will receive $6,800 three years from now. The discount rate is 10 percent. d. Use the formula PV 5 FV 3 _____ 1 (1 1 i) n to find the present value of $6,600 received three years from now at 10 percent interest.

Answer

The present value is $4,958.68.

See the step by step solution

Step by Step Solution

Step 1: Identification of the required information

Future Value (FV) = $6,600

Interest Rate (i) = 10%

Period (n) = 3 years

Step 2: Present value (PV)

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