Present value of the future cash flow is 158318.
Rate of return is 8%
The future value FV is divided by a factor of 1 + I for each interval between the present date and the future date in the present value formula, PV=FV/(1+i)n. For the PV calculation, enter the following data into the present value calculator: The FV, or future value. The formula's n stands for the number of time periods (years) t.
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How much do you have to deposit today so that you can withdraw $50,000 a year at the end of years 5 through 9, and $25,000 at the end of year 10 when rate of return is 8%.
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