Question

What is the present value of $12,800 to be received 3 years from today if the discount rate is 5 percent?

Answer 1

Answer:

$11,057.12

Explanation:

We use the present value function that is shown in the spreadsheet which is attached below:

Data Provided in the question are:

Future value = $12,800

Rate of interest = 5%

NPER = 3 years

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $11,057.12