SOLUTION: What is the present value of a single cash flow of $25,000 received at the endof 10 years, if we assume a discount rate of 5% annually? With a discount rate of 7%?
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Question 1015074: What is the present value of a single cash flow of $25,000 received at the endof 10 years, if we assume a discount rate of 5% annually? With a discount rate of 7%?
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
The compound balance formula is .
Here, A = 25000, r = 0.05, n = 1, and t = 10.
==>
Thus the present value is $15,347.83.
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