How do i get the present value of interest present value


How do I get the present value of interest. Present value formula of $1 = 1/(1+i)^n

for the principal present value say 100,000 i = 10% ; n = 5 1/(1.05)^5= .6139 * 100,000 = 61,391

4,000 is interest payment paid annually = 7.72173

what is the formula to find Present Value of interest of 7.72173?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: How do i get the present value of interest present value
Reference No:- TGS02595890

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)