An investment will pay you $16,000 in 7 years. The appropriate discount rate is 10 percent...

An investment will pay you $16,000 in 7 years. The appropriate discount rate is 10 percent compounded daily. What is the present value?

Expert Solution

n = 365 * 7 = 2,555 days

r = 7%/365 = 0.0192%

$16,000 = PV * (1 + 0.0192%)²⁵⁵⁵

$16000 = PV * 1.6322395

PV = $9,802.48

jeff jeffy answered 2 years ago

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