Question

An investment will pay you $67797 in 9 years. If the appropriate discount rate is 13 percent compounded daily, what is the present value? (Use 365 days a year. Round time value factors to 6 decimal places and final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456 should be entered as 123456.)

Answer 1

A	B	C	D	E	F	G
2
3		Future Value	$67,797
4		Period	9	Years
5		Interest rate	13%	(Compounded daily)
6
7		Daily interest rate	=13% / 365
8			0.036%
9
10		Period in days	3285	=D4*365
11
12		Present value	=$67,797*(P/F,0.036%,3285)
13			=$67,797 / (1+0.036%)3285
14			$21,046.33	=D3/((1+D8)^D10)
15
16		Hence present value is	$21,046.33
17