Answer:
The present value is $57.31.
Explanation:
Future value, FV = $ 1000, n = 10 years, rate = 10% and m = 3.
FV = PV[tex](1 + r)^{mn}[/tex]
where FV is the future value, PV is the present value, r is the rate, m is the number of periods, n is the number of ears.
⇒ 1000 = PV[tex](1 + 0.1)^{10*3}[/tex]
= PV[tex](1.1)^{30}[/tex]
1000 = PV x 17.4494
PV = [tex]\frac{1000}{17.4494}[/tex]
= 57.31
The present value is $57.31.
