What is the present value


Problem:

What is the present value of $12,500 to be received 10 years from today? Assume a discount rate of 8% compounded annually and round to the nearest $10.

  • $5,790
  • $11,574
  • $9,210
  • $17,010

Note: Explain all steps comprehensively.

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Accounting Basics: What is the present value
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