you have been offered an investment that will pay you $10,000 in 10 years. you think a 7% annual rate compounded annually is an appropriate rate of return or interest rate for this investment. what is the most you would be willing to pay for this investment today based on this information? round your answer to the nearest dollar.

13 hours ago 1
Nature

It looks like part of your question is missing, specifically the annual rate (interest rate) you think is appropriate. To calculate the most you would be willing to pay for the investment today (the present value), you need:

  • The future value (FV) = $10,000
  • The number of years (n) = 10
  • The annual interest rate (r) compounded annually

The formula to calculate the present value (PV) is:

PV=FV(1+r)nPV=\frac{FV}{(1+r)^n}PV=(1+r)nFV​

If you provide the annual interest rate, I can calculate the exact amount for you.

Example Calculation

If you think a 5% annual rate is appropriate, then:

PV=10,000(1+0.05)10=10,0001.6289≈6139PV=\frac{10,000}{(1+0.05)^{10}}=\frac{10,000}{1.6289}\approx 6139PV=(1+0.05)1010,000​=1.628910,000​≈6139

So, you would be willing to pay approximately $6,139 today. Please provide the interest rate to get your specific answer!