What is the present value of $10 000 to be received in 5 years from now if the annual discount rate is 10% and the compounding frequency is annual?
A)$5000.00
B)$16105.10
C)$6666.67
D)$6209.21

Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula: PV = FV / (1 + r)^n, where FV is the future value ($10,000), r is the annual discount rate (0.10), and n is the number of years (5). Plugging in the values: PV = 10000 / (1 + 0.10)^5 = 6209.21.

What Is the Present Value of $10 000 to Be