From beginner to expert, IDNLearn.com has answers for everyone. Ask your questions and receive accurate, in-depth answers from our knowledgeable community members.
Sagot :
You have to invest today $26,019.48 at 4.5ompounded annually to have $32,425 available for the purchase of a car at the end of five years from now.
It is calculated as follows:
The formula for calculating present value is:
PV = FV(1 + r)^-n
where:
FV = Future value = 32425
P = Present value
R = interest rate = 4.5
N = number of years = 5 years
$32,425(1.045)^-5 = $26,019.48
Present value or PV is the current value of a future sum of money or any stream of cash flows giving a specified rate of return.
To know more about present value here:
https://brainly.com/question/17322936
#SPJ4
We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Your questions find answers at IDNLearn.com. Thanks for visiting, and come back for more accurate and reliable solutions.
