PRESENT VALUE What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually

Ibrahimhamm

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2022-07-10

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PRESENT VALUE What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?

Accounting, textbook solutions, Accounting textbook-solutions,

Ibrahimhamm

2022-07-10

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Given: FV = 5000

n=20 yrs

i=7%

Now,

PV = FV/(1+i)^n

= 5000/(1+0.07)^20

=1292 .

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