If it's 12% per year, compounded annually, then it is: 100 * (1 + 0.12)-2 = 79.72
$5,790
To calculate the present value of $132,000, you need to know the discount rate and the time period for which you're calculating the present value. The formula is ( PV = \frac{FV}{(1 + r)^n} ), where ( FV ) is the future value ($132,000), ( r ) is the discount rate, and ( n ) is the number of periods. Without specific values for ( r ) and ( n ), the present value cannot be determined.
The formula for the present value of an annuity due. The present value of an annuity due is used to derive the current value of a series of cash payments that are expected to be made on predetermined future dates and in predetermined amounts.
Present Value Interest Factor, abbreviated as PVIF and is used to simplify present value computations, may be computed as follows: PVIF = 1 / ( ( 1 + r) ^ t) where... r = interest discount rate t = number of periods
because the rate of discount is being increased therefore the original amount lets say $500 no longer remains the same nor does it raise or stay the same.
What is the present value of 500 to be recieved 10 yrs from today if it is discount at the rate of 6 percent?
i think the present of 700 is 700%
$5,790
the net present value as determined by normal discount rate is 10%
To increase a given present value, you would generally lower the discount rate. This is because a lower discount rate reduces the impact of future cash flows, making the present value higher. Conversely, increasing the discount rate would decrease the present value.
As, the present value of future cash flows is determined by the discount rate, so increase or decrease in the discount rate will affect the present value. Discount rate is simply cost or the expense to the company,so in simplest terms, discount rate goes up, cost goes up,so this will lower the present value of cash flows. Assumes a discount rate of 5%,to discount $100 in one years time: Present Value=$100 * 1/(1.05) =$95.24 Ok,as you say,if the discount rate becomes higher,let's say 8%: Present Value=$100 * 1/(1.08) =$92.6 so, the higher the discount rate, the lower the present value.
The discount value is $11.99 and the sale price is $67.99
It depends on what discount rate you're using.
Present value of tax saving = 5 million * 0.34 / 1.1 Present value = 1700000 / 1.1 Present value = 1545455
Testimony that is not believed for some reason.
yes they are the same
Yes, at the end of the year you take the difference between the interest revenue gained and what would have been gained if the investment had the present value interest. For a discount, the difference will be credited against the discount received.