B.. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%?
To calculate the present value to be paid, you need to calculate the simple interest which is gotten by multiplying principal, rate and time. Therefore I = p r t which is I = 15,000 x 20 x 18/100 = 54,000.
I believe this is the right formula to calculate your answer. PXRXT=I (Interest)So, (principle $15,000.00) x (rate 0.18%) x (time 20 years)Hopefully someone who is more in tune with this, will correct me, if I'm wrong.
15000(0.18)=if it's 18% per year15000(0.18)(20)=