What is the value today of $6,000 that is due in 413 years ifthe interest...

What is the value today of $6,000 that is due in 413 years if the interest rate is 2.63% compounded monthly?

Expert Solution

Amount to be received	6,000.00
Period (in years)	413
Compounding frequency	monthly
Interest rate	2.63%
Monthly interest rate --> Interest rate / 12	0.2192%
no. of months (Period x 12)	4,956

Present value = Future value x PV factor

Present value = Future value x ((1+monthly interest rate)^-no. of months)

Present value = Future value x ((1+0.2192%)^-4956)

Present value = 6000 x 0.000019

Present value = $ 0.1140

jeff jeffy answered 3 years ago

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