How much would $10,000 due in 100 years be worth today if the discount rate were 10%? A. $0.73 B. $1.21 D. $4.83 E. $6.30

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asked Jul 8, 2024 53.0k views

1 Answer

Stefan Pintilie · Answer 1 · 2024-07-13T19:10:01+0000

The present value of $10,000 due in 100 years at a 10% discount rate is approximately $61.28.

To calculate the present value of $10,000 due in 100 years with a discount rate of 10%, you can use the formula for present value:

Present Value = Future Value / (1 + Discount Rate)^n

Where Future Value is $10,000, Discount Rate is 10%, and n is the number of years (100).

Using this formula:

Present Value = $10,000 / (1 + 0.10)^100

Calculating this on a calculator or spreadsheet, the present value of $10,000 due in 100 years at a 10% discount rate is approximately $61.28.