What is the present value of $10 000 to be received in 5 years if the annual discount rate is 10% and compounding frequency is annual?
A)$5000.00
B)$16105.10
C)$6666.67
D)$6209.21

Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the annual discount rate, and n is the number of years. Here, PV = $10,000 / (1 + 0.10)^5 = $6209.21.

What Is the Present Value of $10 000 to Be