What is the present value of $250 to be paid in two years if the interest rate is 15%? Solution The present value would

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What Is The Present Value Of 250 To Be Paid In Two Years If The Interest Rate Is 15 Solution The Present Value Would 1 (85.19 KiB) Viewed 11 times

What is the present value of $250 to be paid in two years if the interest rate is 15%? Solution The present value would be $189.04 Using Equation 1 Thus where CF = cash flow in two years = $250 i = annual interest rate = 0.15 n = number of years = 2 You try it... What is the present value of $100 to be paid in one year if the interest rate is 10%? PV = $ (Round your response to two decimal places.) PV = Today 0 $189.04 PV = $250 (1 + 0.15)² CF (1 + i)n Year 1 $250 1.3225 = $189.04 Year 2 $250