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What is the present value of $15,000 to be received in 6 years if you earn...

What is the present value of $15,000 to be received in 6 years if you earn 8 percent compounded quarterly?Please provide step-by-step instructions for solving the problem

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Answer #1

The amount to be received in 6 years = $15,000

Calculating the Present Value of amount to be receive in 6 years using the following formula:-

Where, Future Value = $15,000

r = Interest rate = 8%

n= no of periods = 6 years

m = no of times compounding in a year = 4 ( as quarterly compounding)

Present Value = $9,325.82

So, the present value of $15,000 to be received in 6 years is $ 9,325.82

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