Assuming a constant discount rate of 16% the present value of £58 270 receivable at the end of year 9 is (to the nearest £):

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Quizplus · Accepted Answer

The present value (PV) of a future amount can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value (£58,270), r is the discount rate (16% or 0.16), and n is the number of periods (9 years). Plugging these values into the formula gives PV = £58,270 / (1 + 0.16)^9, which calculates to approximately £15,325.

Assuming a Constant Discount Rate of 16% the Present Value