What is the present value of an investment that will pay $1,000 in 5 years, if the discount rate is 10% per annum?
Where: PV = present value FV = future value = $1,000 r = discount rate = 10% = 0.10 n = number of years = 5 Ushtrime Te Zgjidhura Investime
PV = FV / (1 + r)^n