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Compute the present value of a $100 investment made 6 months, 5 years, and 10 years from now at 4 percent interest. (lo1

Sagot :

$98.05 present value of invstment

What is present value?

In economics and finance, present value, also known as present discounted value, is the monetary value of an expected revenue stream as of the valuation date.

The current value of a future sum of money discounted by a rate of return is known as its present value. It informs you how much you need to invest today to earn a certain amount in the future. The difference between the present value of cash inflows and cash outflows over time is referred to as net present value.

The present value of the costs is the amount of money that the costs are worth today. The present value of costs considers a notion known as the time worth of money.

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