Problem
The present value of \( \$ 100000 \) in 10 years' time if the discounting rate is \( 6 \% \) compounded annualiy is:
Solution
Step 1 ：PV = \( \frac{FV}{(1+r)^n} \)
Step 2 ：PV = \( \frac{100000}{(1+0.06)^{10}} \)
Step 3 ：PV = \( \$ 55839.6289 \)
