What is the present value of a $1,950 payment made in six years when the discount rate is 8 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value
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08 - n is the number of years, which in this case is 6 So, the present value factor is: Present Value Factor = 1 / (1 + 0.08)^6 Present Value Factor = 1 / (1.08)^6 Present Value Factor = 1 / 1.593848 Present Value Factor ≈ 0.627 Show more…
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