What is the present value of a $2,000 payment made in five years when the discount...

What is the present value of a $2,000 payment made in five years when the discount rate is 9 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expert Solution

	Present value	FV×(1÷(1+r)^n)

	Here,

A	Rate per annum	9.00%
B	Number of years	5
C	Number of compoundings per per annum	1
A÷C	Rate per period ( r)	9.00%
B×C	Number of periods (n)	5
	Future value (FV)	2,000

	Present value	$ 1,299.86
		2000×(1÷(1+9%)^5)

jeff jeffy answered 1 year ago

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What is the present value of a $2,000 payment made in five years when the discount...

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