Interest rates are 10%. What is the present value of £60,000 receivable in 6 years' time?

Name: Interest rates are 10%. What is the present value of £60,000 receivable in 6 years' time?
Brand: Quizplus
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Quizplus · Accepted Answer

The present value is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value (£60,000), r is the interest rate (10% or 0.10), and n is the number of years (6). Plugging in the values, PV = £60,000 / (1 + 0.10)^6 = £33,868.

Interest Rates Are 10