# The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

**Solution:**

Present value = $10,000

Rate of discount per year = 5% = 1 - 0.05 = 0.95

Amount received at the end of 5 years should be found

Consider the formula

Final = Original × Multiplier^{n}

Final = 10,000 × 0.95^{5}

By further calculation

Final = 7737.8093

Therefore, the amount received at the end of 5 years is $ 7737.81.

## The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

**Summary:**

The present value of $10,000 discounted at 5% per year and received at the end of 5 years is $ 7737.81.

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