In: Finance
What is the present value of $13,530 that you expect to receive in 7 years? Assume an annual discount rate of 5.5%.
Group of answer choices
$10,578.46
$9,301.02
$19,681.81
$18,739.05
Information provided:
Future value= $13,530
Yield to maturity= 5.5%
Time= 7 years
Enter the below in a financial calculator to compute the present value:
FV= 13,530
I/Y= 5.5
N= 7
Press the CPT key and PV to compute the present value.
The value obtained is 9,301.02.
Therefore, the present value is $9,301.02.
Hence, the answer is option b.