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Homework answers / question archive / If you are offered ?$320,000 in 12 years and you can earn 14 percent on your? money, what is the present value of ?$320,000?? ?$ nothing     ?(Round to the nearest? cent

If you are offered ?$320,000 in 12 years and you can earn 14 percent on your? money, what is the present value of ?$320,000?? ?$ nothing     ?(Round to the nearest? cent

Finance

If you are offered ?$320,000 in 12 years and you can earn 14 percent on your? money, what is the present value of ?$320,000??

?$

nothing

 

  ?(Round to the nearest? cent.)

pur-new-sol

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Computation of Present Value:

Present Value  = Future Value/(1+Interest Rate)^ Time

= $320,00/(1+14%)^12 years 

= $320,000/4.8179

Present Value = $66,418.91

So, Present Value is $66,418.91