value An investment will pay you 91000 in five years Assume

value An investment will pay you $91,000 in five years. Assume the appropiate discount rate is 6.25 percent nerest rates are dand misquolea Difficulty: 1 Basic

Solution

Given information

Future value - $91,000

Time 5 year, compounded daily it will be 1825 days

Rate - 6.25 % compounded daily it will be 0.017%

Present value =future value /(1+r)^n

=91000/(1.00017) ^1825

=$66728. 75