The present value of $10,000 to be received each year for ten years and earning a 14 percent return (rounded) is

Question

Quizplus · Accepted Answer

The present value of an annuity can be calculated using the formula PV = P * [(1 - (1 + r)^-n) / r], where P is the payment amount, r is the interest rate per period, and n is the number of periods. Plugging in the values ($10,000 for P, 0.14 for r, and 10 for n), the calculation gives a present value of approximately $52,160.

The Present Value of $10,000 to Be Received Each Year