Question

What is the present value of $992 to be received in 13.5 years from today if our discount rate is 3.5 percent?

Answer 1

Answer: $1578

Explanation:

1) Take your discount rate of 3.5% and convert it to decimal form (0.035)

2) Then, 0.035 * 13.5 = 1.59109

3) 1.59109 * 992 = $1578