Question
I do not understand the solution and answer to this question posted here. https://www.chegg.com/homework-help/questions-and-answers/assuming-discount-rate-8-present-value-50-received-end-year-20-years-formula-50-received-b-q10040617?trackid=8ea154a6b73f&strackid=20d111c8ab58 I thought that Present Value decreases over time, because they want
I do not understand the solution and answer to this question posted here.
https://www.chegg.com/homework-help/questions-and-answers/assuming-discount-rate-8-present-value-50-received-end-year-20-years-formula-50-received-b-q10040617?trackid=8ea154a6b73f&strackid=20d111c8ab58
I thought that Present Value decreases over time, because they want to know in 20 years. What to invest now to get $50 in the future.
I have calculated it like this:
PV = $50/1.08(exponent20)
=$50/4.6610
=$10.7273
Any help is appreciated.
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
