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You are considering investing in financial asset of return 18000 and 22000 respectively.rate of return is 10%. What is the present value?
joyline yegon
Apr 4
You are considering investing in financial asset of return 18000 and 22000 respectively.rate of return is 10%. What is the present value?
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Apr 4
To calculate the present value of the financial assets, you can use the formula for present value:
PV = FV / (1 + r)^n
Where:
PV = Present Value
FV = Future Value (18000 or 22000)
r = Rate of return (10% or 0.10)
n = Number of periods (1, as it is a one-time investment)
For the financial asset with a return of 18000:
PV = 18000 / (1 + 0.10)^1
PV = 18000 / 1.10
PV = 16363.64
For the financial asset with a return of 22000:
PV = 22000 / (1 + 0.10)^1
PV = 22000 / 1.10
PV = 20000
Therefore, the present value of the financial asset with a return of 18000 is 16363.64 and the present value of the financial asset with a return of 22000 is 20000.
PV = FV / (1 + r)^n
Where:
PV = Present Value
FV = Future Value (18000 or 22000)
r = Rate of return (10% or 0.10)
n = Number of periods (1, as it is a one-time investment)
For the financial asset with a return of 18000:
PV = 18000 / (1 + 0.10)^1
PV = 18000 / 1.10
PV = 16363.64
For the financial asset with a return of 22000:
PV = 22000 / (1 + 0.10)^1
PV = 22000 / 1.10
PV = 20000
Therefore, the present value of the financial asset with a return of 18000 is 16363.64 and the present value of the financial asset with a return of 22000 is 20000.
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