3. what is the present value of single cash flow of $25,000 received at the end of 10 years, if we asume a discount rate of 5% annually with a dicount rate of 7%?

5% Discount: $14,968.42

7% Discount: $12,099.56

Step-by-step explanation:

Since the discount rate is being compounded annually we can go ahead and use the Exponential Growth Formula, or in this case we will actually be using the Exponential Decay Formula since we are compounding a discount rate

Where:

Since we are looking for the present value in 10 years with a rate of 5%, we can plug these values into the formula and solve for D.

So the Present day value at 5% discount rate is $14,968.42 .

Now we can solve the equation at a 7% discount rate.

So the Present day value at 7% discount rate is $12,099.56

I hope this answered your question. If you have any more questions feel free to ask away at .

i’m here for points.

hi there!

first we need to find out how much they are adding to each number to make the next number.

ex: 4 + 4 = 8, 8 + 8 = 16, and so on.

so continuing with 32,

32 + 32 = 64

64 + 64 = 128

128 + 128 = 256

256 + 256 = 512

4, 8, 16, 32, 64, 128, 256, 512

the 8th term of the sequence will be 512

hope this ! ~