# QRB 501 Week 4 DQ 2

## QRB 501 Week 4 DQ 2

QRB 501 Week 4 DQ 2

http://www.uopcoursetutorials.com/QRB-501/QRB-501-Week-4-DQ-2

QRB 501 Week 4 DQ 2

Often in personal finance we want to know what our \$1 investment today will be worth in 20 years. In business however, there is more concern with answering the question, “If I receive \$100 in 5 years, what is that worth today?” To answer this question, modify the formula fv = pv*((1+i)^n) and use the reciprocal. Simply stated, the reciprocal of a number is 1 divided by the number; the reciprocal of 10, for example, is 1/10. In the formula above, we divide both sides by ((1+i)^n), which creates a new formula where the fv is multiplied by the reciprocal of the original: fv*(1/((1+i)^n))=pv. Select an interest rate and number of periods—be sure your numbers are different from other students who already answered this question—to calculate the present value of \$100 received in the future. What would the value of \$100 in the future be today given the interest rate and number of periods you selected?

UOPCOURSETUTORIALS http://www.uopcoursetutorials.comQRB 501 Week 4 DQ 2