What is the present value if an organization expects to make $100,000 four years from now and the annual interest rate is 6 percent?

Asked by Krystle, Last updated: Apr 13, 2024

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John Smith

Answered May 04, 2017

$79,000

The present value of $100,000 four years from now can be calculated by using this formula: present value = FV / (1 + i)n. FV is the future value, i is the interest rate, and n is the number of time periods.

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What is the present value if an organization expects to make $100,000 four years from now and the annual interest rate is 6 percent?

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