Suppose you have an investment that will pay you $65,000 in 10 years. At the end of the 10th year, the investment will have a present value of $65,000. You will be able to take advantage of compound interest and withdraw the money whenever you wish. It is a good idea to invest some of your money in a retirement account to maximize the returns. In this case, you should use the appropriate discount rate, which is 7 percent compounded daily.
Suppose You Have an Investment That Will Pay You $65,000 in 10 Years