Problem

The present value of \( \$ 100000 \) in 10 years' time if the discounting rate is \( 6 \% \) compounded annualiy is:

Answer

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Answer

PV = \( \$ 55839.6289 \)

Steps

Step 1 ：PV = \( \frac{FV}{(1+r)^n} \)

Step 2 ：PV = \( \frac{100000}{(1+0.06)^{10}} \)

Step 3 ：PV = \( \$ 55839.6289 \)

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