Present Value of a Single Sum What is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and discounted at 6% compunded quarterly? Round your answer to two decimal places.

Present Value of a Single Sum What is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and discounted at 6% compunded quarterly? Round your answer to two decimal places.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 10E: Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of 3,000 each...

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

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Present Value of a Single Sum

What is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and discounted at 6% compunded quarterly?

Round your answer to two decimal places.

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