Lets say, you wanted to find out what the present value is of $400 received 3 years from now if the interest rate you could earn were 8%.

PV=CPT=-317.533 FV=400 N=3 I=8% PMT=0 (for all these problems PMT will equal 0; we discuss PMT in chapter 6) Identify the component you are solving for with CPT (just like on the calculator); highlight that component; denote the cash flow direction. Do not round any of your inputs and round your final answer to three decimal places.

Identify the component you are solving for with CPT (just like on the calculator); highlight that component; denote the cash flow direction. Do not round any of your inputs and round your final answer to three decimal places.

What is the value in year 3 of a $500 cash flow made in year 5 when interest rates are 6 percent?