An investment will pay you $91,000 in five years. assume the appropriate discount rate is 6.25 percent compounded daily. what is the present value?

Given:

Value = $91,000, value after 5 years

t = 5 years

n = 365, daily compounding

r = 6.25% = 0.0625, discount rate

Note that

n*t = 365*5 = 1825

Let P = principal, the current value

Then

P (1 + 0.0625/365) ¹⁸²⁵ = 91000

1.3668P = 91000

P = $66,578.80

Answer: $66,758.80