document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1015074>Question 1015074</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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%?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #631595 by </B><A HREF=/tutors/aboutme.mpl?userid=robertb><B>robertb(5830)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=robertb><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=robertb><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=631595\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The compound balance formula is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A=P%281%2Br%2Fn%29%5E%28nt%29 ALIGN=MIDDLE  ALT=\"A=P%281%2Br%2Fn%29%5E%28nt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >.<BR>\n" );
document.write( "Here, A = 25000, r = 0.05, n = 1, and t = 10.\r<BR>\n" );
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document.write( "==> <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P+=+A%281%2Br%2Fn%29%5E%28-nt%29+=+25000%281%2B0.05%2F1%29%5E%28-10%29+=+25000%2A1.05%5E-10+=+15347.83 ALIGN=MIDDLE   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "Thus the present value is $15,347.83. </SPAN>\n" );
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