Question

Find the present value. Assume there are 360 days in a year.

FV = $83870
t = 226 days
r = 6.8%

Answer 1

Therefore the present value = $ 80517.91

Step-by-step explanation:

$PV = FV \div (1+i)^n$

Here FV = $83870

i = 6.8% = 0.068

$n = \frac{226}{365}$ =0.62

Therefore,

$PV=\frac{83870}{(1+0.068)^{0.62}}$

     =$80517.91

Therefore the present value = $ 80517.91