Evaluate the value of x at an interest rate of 4% per year from the cash flow diagram below. A...
Question:
Evaluate the value of x at an interest rate of 4% per year from the cash flow diagram below.
 |
What is the correct answer?
A) 1836.87
B) 1986.12
C) 2004.29
D) 2420.70
Present Value of Investment:
The present value of an investment which is expected to yield a stream of cash flows gives an idea about the equivalent value of the investment today. The time value of money concept can be even used to ascertain the total value of the investment at a particular given time in the future.
Answer and Explanation: 1
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View this answerThe calculated value of x at interest rate of 4% per year is $2,578.30.
The value of x can be determined by equating the present value of all the...
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How to Calculate Present Value of an Investment: Formula & Examples
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Chapter 24 / Lesson 15
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Calculating the present value of an investment tells how much money needs to be saved now in order to reach a desired, future amount. Explore the definition of and formula for the present value of an investment, and see examples.
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