Question2 1 pts You have an offer of receiving 12484 at the

Question2 1 pts \"You have an offer of receiving $12,484 at the end of 6 years or P dollars today. If you receive P dollars today, you plan on depositing the amount in a bank that pays 2% interest. What value of P would make you indifferent in your choice between P dollars today and receiving $12,484 at the end of 6 years?\"

Solution

FV of P invested for 6 years at 2% interest = 12484

interest rate = 2% (annual)

P x (1 + 2%)⁶ = 12484

P = $11085.43