Using a discount rate of 12 percent, the present value of a $50,500 benefit received 2 years from now is $40,258.29.

Name: Using a discount rate of 12 percent, the present value of a $50,500 benefit received 2 years from now is $40,258.29.
Brand: Quizplus
Rating: 4.9 (45 reviews)

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 discount rate, and n is the number of periods. Plugging in the values: PV = $50,500 / (1 + 0.12)^2 = $40,258.29.

Using a Discount Rate of 12 Percent, the Present Value