If Joel earns a 10% after-tax rate of return, $10,000 received in two years is worth how much today (rounded)?

Name: If Joel earns a 10% after-tax rate of return, $10,000 received in two years is worth how much today (rounded)?
Brand: Quizplus
Rating: 4.9 (57 reviews)

Question

Quizplus · Accepted Answer

To find the present value of $10,000 received in two years with a 10% rate of return, use the formula: PV = FV / (1 + r)^n. Here, FV = $10,000, r = 0.10, and n = 2. PV = $10,000 / (1.10)^2 = $8,264.46, rounded to $8,260.

If Joel Earns a 10% After-Tax Rate of Return, $10,000