The chief financial officer of a home health agency needs to determine the present value of a $10,000 investment received at the end of year 10. What is the present value if the discount rate is: a. 6 percent? b. 9 percent? c. 12 percent? d. 15 percent?

Answer 1

I saw your post earlier, but was not sure of your use of the phrase "discount rate" as it is used in the US (I am in Canada), so I am taking a guess that all we have is a standard compound interest problem

I will do the first one, if you think the solution is correct, do the others the same way

a) PV = 10000(1.06)^-10 = $ 5583.95

check:
if I invest 5583.95 at 6% per annum compouded annually for 10 years, I will have

5583.95(1.06)^10 = 5583.95(1.790847697) = 10000.00