compute the present value for 14 years interest rate 8 futur

compute the present value for 14 years, interest rate 8% future value $16,151

Solution

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=$16151/1.08^14

=$16151*0.340461041

which is equal to

=$5498.79(Approx)(Please note that intermediate calculations have not been rounded off].