asked 31.1k views
4 votes
What is the present value of $300 due in 1 year at a discount rate of 5%?

asked
User Hhravn
by
9.2k points

1 Answer

7 votes

Final answer:

The present value of $300 due in 1 year at a discount rate of 5% is $285.71.

Step-by-step explanation:

The present value of $300 due in 1 year at a discount rate of 5% can be calculated using the present value formula. The formula is:

Present Value = Future Value / (1 + Discount Rate) ^ Number of Periods

Using this formula, the present value is:

Present Value = $300 / (1 + 0.05) ^ 1 = $285.71

Therefore, the present value of $300 due in 1 year at a discount rate of 5% is $285.71.

answered
User James Wulkan
by
7.9k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.