answersLogoWhite

0


Best Answer

If it's 12% per year, compounded annually, then it is: 100 * (1 + 0.12)-2 = 79.72

User Avatar

Wiki User

โˆ™ 2010-10-24 11:35:05
This answer is:
User Avatar
Study guides

Algebra

20 cards

A polynomial of degree zero is a constant term

The grouping method of factoring can still be used when only some of the terms share a common factor A True B False

The sum or difference of p and q is the of the x-term in the trinomial

A number a power of a variable or a product of the two is a monomial while a polynomial is the of monomials

โžก๏ธ
See all cards
3.75
โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…
865 Reviews

Add your answer:

Earn +20 pts
Q: What is the present value of 100 to be received at the end of two years if the discount rate is 12 percent?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the present value of 500 to be received 10 yrs from today if it is discount at the rate of 6 percent?

What is the present value of 500 to be recieved 10 yrs from today if it is discount at the rate of 6 percent?


What is the Present value of 700 to be received in two installments of 350 two years from today at a discount rate of 10 percent?

i think the present of 700 is 700%


What is the present value of 12500 to be received 10 years from today Assume a discount rate of 8 percent compounded annually and round to the nearest 10?

$5,790


What is normally used as the discount rate in the net present value method?

the net present value as determined by normal discount rate is 10%


As the discount rate becomes higher and higher the present value of inflows approaches what?

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 regular price of an item is 79.99 the discount percent 15 percent find the discount and the sale price?

The discount value is $11.99 and the sale price is $67.99


What does discount mean?

A discount is when the value of an item is brought down. The discount can sometimes be expressed in terms of a value, or in terms of a percentage, for example, a 50% discount means that the value of the item is reduced by 50 percent, or a half.


1000 is expected to be received 10 years from now The present value of this 1000 future cash flow is what?

It depends on what discount rate you're using.


Is the interest rate and discount rate in present value?

yes they are the same


Calculate the present value of depreciation tax savings on a depreciable asset with a purchase price of 5 million and zero salvage value assuming a 10 percent discount a 34 percent tax rate and?

Present value of tax saving = 5 million * 0.34 / 1.1 Present value = 1700000 / 1.1 Present value = 1545455


What does discounting mean?

A discount is when the value of an item is brought down. The discount can sometimes be expressed in terms of a value, or in terms of a percentage, for example, a 50% discount means that the value of the item is reduced by 50 percent, or a half.


If the interest rate is 4 percent what is the present value of this stream of payments?

Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04

People also asked