Question

Discounting one year what is the present value of a $650 payment in one year when the discount rate is 9 percent?

Answer 1

$591.50

Explanation:

Percentage of payment =100%

Percentage discount = 9%

Therefore Percentage of present value = 100-9= 91%

Present value =

`(91)/(100) * 650 \\ = 591.50`